UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) May 3, 2012

Piedmont Office Realty Trust, Inc.
(Exact Name of Registrant as Specified in Charter)

 
 	 	 	 	 	
Maryland	 	001-34626	 	58-2328421	
(State or Other Jurisdiction
of Incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
 	 	
11695 Johns Creek Parkway Ste 350, Johns Creek, Georgia	 	30097	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s telephone number, including area code (770) 418-8800
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see  General Instruction A.2. below):
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02 Results of Operations and Financial Condition
On May 3, 2012, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the first quarter 2012 and published supplemental information for the first quarter 2012 to its website. The press release and the supplemental information are attached hereto as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibits and the information set forth therein are deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:

Exhibit No.	  	Description	
 	 	
99.1	  	Press release dated May 3, 2012.	
 	 	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the First Quarter 2012.	
 
2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

PIEDMONT OFFICE REALTY TRUST, INC.
(Registrant)	
 	 	
By:	 	/s/ Robert E. Bowers	
 	 	Robert E. Bowers
Chief Financial Officer and Executive Vice President	
Date: May 3, 2012
 
3

EXHIBIT INDEX

Exhibit No.	  	Description	
 	 	
99.1	  	Press release dated May 3, 2012.	
 	 	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the First Quarter 2012.	
 
4

Exhibit 99.1
Piedmont Office Realty Trust Reports First Quarter Results
ATLANTA, May 3, 2012—Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE:PDM), an owner of primarily Class A commercial office properties located predominantly in the ten largest U.S. office markets, today announced its results for the quarter ended March 31, 2012.
Highlights for the Three Months Ended March 31, 2012:
 
 	•	 	Achieved Funds From Operations (“FFO”) of $0.35 for the quarter;	
 
 	•	 	Continued to advance its portfolio refinement strategy by selling four Portland assets at a gain of $17.8 million, or $0.10 per diluted share, marking its exit from the Portland market;	
 
 	•	 	Completed over 800,000 square feet in leasing during the quarter, including approximately 500,000 square feet of office leasing;	
 
 	•	 	Paid off the $140.0 million mortgage on 500 W. Monroe, which was the last remaining debt on the property.	
Donald A. Miller, CFA, President and Chief Executive Officer stated, “We are pleased to continue to execute on our long-term strategy of narrowing the number of markets in which we operate and maintaining strong financial metrics in order to be able to take advantage of future opportunities. Although our office leasing volume was lighter this quarter compared to the record leasing year we experienced in 2011, we continue to be optimistic that our leasing activity will reflect strong volumes during 2012.”
Results for the Quarter ended March 31, 2012
Piedmont’s net income available to common stockholders for the first quarter of 2012, which includes the gain mentioned above, was $37.2 million, or $0.22 per diluted share, as compared with $34.0 million, or $0.20 per diluted share, for the first quarter 2011. Both FFO and Core FFO were $60.0 million, or $0.35 per diluted share, for the quarter ended March 31, 2012 as compared to $71.3 million, or $0.41 per diluted share, for the quarter ended March 31, 2011, reflecting an anticipated decrease as a result of the sale of 35 W. Wacker during the fourth quarter of 2011, as well as downtime before certain major leases commence later in 2012.
Adjusted FFO (“AFFO”) for the first quarter of 2012 totaled $50.1 million, or $0.29 per diluted share, as compared to $56.3 million, or $0.33 per diluted share, in the first quarter of 2011, reflecting the anticipated decrease noted above, offset by lower capital expenditures during the current quarter as compared to the previous period.

Revenues for the quarter ended March 31, 2012 were $133.2 million, as compared with $131.5 million for the same period a year ago, primarily reflecting additional rental revenues and reimbursements from properties acquired during the last twelve months offset by a $3.3 million reduction in lease termination revenue.
Property operating costs were $52.8 million in the first quarter of 2012 compared to $48.8 million in the first quarter of 2011, reflecting added operating costs from the acquisition of seven properties over the last twelve months.
Other income and expense on a quarter over quarter basis decreased approximately $6.2 million, reflecting the acquisition through foreclosure of the 500 W. Monroe Building during the first quarter of 2011 and the resulting conversion of the mezzanine loan receivables related to the property into an equity ownership. Recognition of interest income on the receivables and gain on consolidation of a variable interest entity were recorded during the prior period.
Leasing Update
During the first quarter of 2012, the Company executed approximately 810,000 total square feet of leasing, throughout its markets, including joint venture and industrial assets. Of the leases signed during the quarter, approximately 437,000 square feet related to its consolidated portfolio of office properties, 74,000 square feet related to a renewal at a joint venture property, and 300,000 square feet related to a seven-year new lease at one of its two industrial properties. Of the approximately 437,000 square feet of consolidated office leasing, 275,000 square feet, or 63%, was renewal-related and 162,000 square feet, or 37%, was with new tenants.
The stabilized portfolio was 87.5% leased as of March 31, 2012 as compared to 89.1% leased as of December 31, 2011, primarily reflecting the expiration of several large leases during the period. The Company’s overall office portfolio was 84.4% leased as of March 31, 2012, with a weighted average lease term remaining of 6.6 years. Details outlining Piedmont’s significant upcoming lease expirations and the status of current leasing activity can be found in the Company’s quarterly supplemental information package.
Capital Markets, Financing and Other Activities
As previously announced, during the first quarter Piedmont completed the disposition of four office buildings (the Deschutes, Rhein, Rogue, and Willamette buildings) and 18.19 acres of adjoining vacant land located in Beaverton, Oregon for approximately $43.9 million, exclusive of closing costs. The disposition marks Piedmont’s exit from the Portland market, furthering the Company’s portfolio refinement strategy, and resulted in a gain of $17.8 million, or $0.10 per diluted share, which is included in Piedmont’s statement of operations for the quarter.

During the first quarter of 2012, Piedmont also paid off the $140.0 million mortgage loan secured by the 500 W Monroe Building in downtown Chicago, IL. The mortgage loan represented the last remaining debt secured by the 500 W. Monroe Building.
Piedmont’s gross assets amounted to $5.3 billion as of March 31, 2012. Total debt was approximately $1.4 billion as of March 31, 2012 as compared to $1.5 billion as of December 31, 2011. The Company’s total debt-to-gross assets ratio was 25.7% as of March 31, 2012 as compared with 27.5% as of December 31, 2011. Net debt to annualized core EBITDA ratio was 4.2 times and the Company`s fixed charge coverage ratio was 4.6 times. As of March 31, 2012, Piedmont had cash and capacity on its unsecured line of credit of approximately $484.5 million.
Subsequent to Quarter End
Dividend
On May 2, 2012, the Board of Directors of Piedmont declared a dividend for the second quarter of 2012 in the amount of $0.20 per common share outstanding to stockholders of record as of the close of business on June 1, 2012. Such dividends are to be paid on June 22, 2012.
Repayment of Debt
On May 1, 2012, Piedmont repaid in full the balance outstanding on the $45.0 Million Fixed-Rate Loan secured by the 4250 N. Fairfax building in advance of its scheduled maturity.
Guidance for 2012
Based on management’s expectations, the Company affirmed its financial guidance for full-year 2012 as follows:

 	 	Low	 	 	 	 	High	 	
 	 	 	 	
Core FFO	 	$	234	 	 	-  	 	$	250	 Million 	
 	 	 	 	
Core FFO per diluted share	 	$	1.35	  	 	-  	 	$	1.45	  	
These estimates reflect the effect of the disposition in December of the 100% leased 35 W. Wacker building in Chicago and management’s view of current market conditions and incorporate certain economic and operational assumptions and projections. Actual results could differ from these estimates. Note that individual quarters may fluctuate on both a cash basis and an accrual basis due to the timing of repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this release.
Non-GAAP Financial Measures
This release contains certain supplemental non-GAAP financial measures such as FFO, AFFO, Core FFO, Same store net operating income, and Core EBITDA. See below for definitions and reconciliations of these metrics to their most comparable GAAP metric.

Conference Call Information
Piedmont has scheduled a conference call and an audio webcast for Friday, May 4, 2012 at 10:00 A.M. Eastern Daylight Time. The live audio webcast of the call may be accessed on the Company’s website at www.piedmontreit.com in the Investor Relations section. Dial-in numbers are 1-877-407-3982 for participants in the United States and 1-201-493-6780 for international participants. The conference identification number is 392077. A replay of the conference call will be available until May 18, 2012, and can be accessed by dialing 1-877-870-5176 or 1-858-384-5517 for international participants, followed by pass code 392077. A webcast replay will also be available after the conference call in the Investor Relations section of the Company’s website. During the audio webcast and conference call, the Company’s management team will review first quarter 2012 performance, discuss recent events, and conduct a question-and-answer period.
Supplemental Information
Quarterly Supplemental Information as of and for the period ended March 31, 2012 can be accessed on the Company`s website under the Investor Relations section at www.piedmontreit.com.
About Piedmont Office Realty Trust
Piedmont Office Realty Trust, Inc. (NYSE:PDM) is a fully-integrated and self-managed real estate investment trust (REIT) specializing in high-quality, Class A office properties located primarily in the ten largest U.S. office markets, including Chicago, Washington, D.C., New York, Dallas, Los Angeles and Boston. As of March 31, 2012, Piedmont’s 75 wholly-owned office buildings were comprised of approximately 21 million rentable square feet. The Company is headquartered in Atlanta, GA with local management offices in each of its major markets. Investment-grade rated by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while transacting $5.9 billion and $1.7 billion in property acquisitions and dispositions, respectively, during its fourteen year operating history. For more information, see  www.piedmontreit.com .
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of the Company`s performance in future periods. Such forward-looking statements can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this press release include the Company`s estimated range of Core FFO and Core FFO per diluted share for the year ending December 31, 2012 and anticipated leasing volumes for 2012.

The following are some of the factors that could cause the Company`s actual results and its expectations to differ materially from those described in the Company`s forward-looking statements: the Company`s ability to successfully identify and consummate suitable acquisitions; the demand for office space, rental rates and property values may continue to lag the general economic recovery; our $500 million Unsecured Facility matures in August 2012 and a failure to renew this facility would cause our business, results of operation, cash flows, financial condition and access to capital to be adversely affected; lease terminations or lease defaults, particularly by one of the Company`s large lead tenants; the impact of competition on the Company`s efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which the Company operates; economic and regulatory changes; additional risks and costs associated with directly managing properties occupied by government tenants; adverse market and economic conditions and related impairments to the Company`s assets, including, but not limited to, receivables, real estate assets and other intangible assets; availability of financing including the Company’s ability to renew its $500 Million Unsecured Facility; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; potential changes in the political environment and reduction in federal and/or state funding of our government tenants; we are and may continue to be subject to litigation; the Company`s ability to continue to qualify as a REIT under the Internal Revenue Code; and other factors detailed in the Company`s most recent Annual Report on Form 10-K for the period ended December 31, 2011, and other documents the Company files with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and the Company does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Research Analysts/ Institutional Investors Contact:
Eddie Guilbert
770-418-8592
research.analysts@piedmontreit.com
Shareholder Services/Transfer Agent Services Contact:
Computershare, Inc.
866-354-3485
Investor.services@piedmontreit.com

Piedmont Office Realty Trust, Inc.
Consolidated Balance Sheets
(in thousands)

 
 	 	 	 	 	 	 	 	 	
 	  	March 31,
2012	 	 	December 31,
2011	 	
 	  	(unaudited)	 	 	 	 	
 	 	 	
Assets:	  	 	 	 	 	 	 	 	
Real estate assets, at cost:	  	 	 	 	 	 	 	 	
Land	  	$	631,745	  	 	$	640,196	  	
Buildings and improvements	  	 	3,750,475	  	 	 	3,759,596	  	
Buildings and improvements, accumulated depreciation	  	 	(813,679	) 	 	 	(792,342	) 	
Intangible lease asset	  	 	191,599	  	 	 	198,667	  	
Intangible lease asset, accumulated amortization	  	 	(119,188	) 	 	 	(119,419	) 	
Construction in progress	  	 	16,725	  	 	 	17,353	  	
 	  	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,657,677	  	 	 	3,704,051	  	
 	 	 	
Investment in unconsolidated joint ventures	  	 	37,901	  	 	 	38,181	  	
Cash and cash equivalents	  	 	28,679	  	 	 	139,690	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	24,932	  	 	 	24,722	  	
Straight line rent receivable	  	 	106,723	  	 	 	104,801	  	
Notes receivable	  	 	19,000	  	 	 	—  	  	
Due from unconsolidated joint ventures	  	 	449	  	 	 	788	  	
Restricted cash and escrows	  	 	25,108	  	 	 	9,039	  	
Prepaid expenses and other assets	  	 	12,477	  	 	 	9,911	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	  	 	5,187	  	 	 	5,977	  	
Deferred lease costs, less accumulated amortization	  	 	228,468	  	 	 	230,577	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	4,326,698	  	 	$	4,447,834	  	

Liabilities:	  	 	 	 	 	 	 	 	
Line of credit and notes payable	  	$	1,352,525	  	 	$	1,472,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	116,292	  	 	 	122,986	  	
Deferred income	  	 	32,031	  	 	 	27,321	  	
Intangible lease liabilities, less accumulated amortization	  	 	46,640	  	 	 	49,037	  	
Interest rate swap	  	 	2,552	  	 	 	2,537	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,550,040	  	 	 	1,674,406	  	
 	 	 	
Stockholders’ equity :	  	 	 	 	 	 	 	 	
Common stock	  	 	1,726	  	 	 	1,726	  	
Additional paid in capital	  	 	3,664,202	  	 	 	3,663,662	  	
Cumulative distributions in excess of earnings	  	 	(888,331	) 	 	 	(891,032	) 	
Other comprehensive loss	  	 	(2,552	) 	 	 	(2,537	) 	
 	  	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,775,045	  	 	 	2,771,819	  	
Non-controlling interest	  	 	1,613	  	 	 	1,609	  	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,776,658	  	 	 	2,773,428	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	  	$	4,326,698	  	 	$	4,447,834	  	

Net Debt (Debt less cash and cash equivalents and restricted cash and escrows)	  	$	1,298,738	  	 	$	1,323,796	  	
Total Gross Assets (1)	  	$	5,259,565	  	 	$	5,359,595	  	
 	 	 	
Number of shares of common stock outstanding at end of period	  	 	172,630	  	 	 	172,630	  	
 
(1) 	Total assets exclusive of accumulated depreciation and amortization related to real estate assets.	

Piedmont Office Realty Trust, Inc.
Consolidated Statements of Income
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/2012	 	 	3/31/2011	 	
 	 	 	
Revenues:	  	 	 	 	 	 	 	 	
Rental income	  	$	105,758	  	 	$	100,322	  	
Tenant reimbursements	  	 	26,741	  	 	 	26,894	  	
Property management fee revenue	  	 	574	  	 	 	830	  	
Other rental income	  	 	124	  	 	 	3,404	  	
 	  	 	 	 	 	 	 	 	
Total revenues	  	 	133,197	  	 	 	131,450	  	
 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	
Property operating costs	  	 	52,782	  	 	 	48,817	  	
Depreciation	  	 	27,453	  	 	 	25,037	  	
Amortization	  	 	12,792	  	 	 	10,338	  	
General and administrative	  	 	5,257	  	 	 	6,612	  	
 	  	 	 	 	 	 	 	 	
Total operating expenses	  	 	98,284	  	 	 	90,804	  	

Real estate operating income	  	 	34,913	  	 	 	40,646	  	
 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	
Interest expense	  	 	(16,537	) 	 	 	(15,640	) 	
Interest and other income (expense)	  	 	97	  	 	 	3,459	  	
Equity in income of unconsolidated joint ventures	  	 	170	  	 	 	209	  	
Gain on consolidation of a variable interest entity	  	 	—  	  	 	 	1,920	  	
 	  	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(16,270	) 	 	 	(10,052	) 	

Income from continuing operations	  	 	18,643	  	 	 	30,594	  	
 	 	 	
Discontinued operations :	  	 	 	 	 	 	 	 	
Operating income	  	 	758	  	 	 	3,377	  	
Gain on sale of real estate assets	  	 	17,830	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Income from discontinued operations	  	 	18,588	  	 	 	3,377	  	

Net income	  	 	37,231	  	 	 	33,971	  	
 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(4	) 	 	 	(4	) 	

Net income attributable to Piedmont	  	$	37,227	  	 	$	33,967	  	

Weighted average common shares outstanding — diluted	  	 	172,874	  	 	 	172,955	  	
 	 	 	
Per Share Information — diluted:	  	 	 	 	 	 	 	 	
Income from continuing operations	  	$	0.11	  	 	$	0.18	  	
 	  	 	 	 	 	 	 	 	
Income from discontinued operations	  	$	0.11	  	 	$	0.02	  	
 	  	 	 	 	 	 	 	 	
Net income available to common stockholders	  	$	0.22	  	 	$	0.20	  	

Piedmont Office Realty Trust, Inc.
Funds From Operations, Core Funds From Operations and Adjusted Funds From Operations
Unaudited (in thousands except for per share data)

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/2012	 	 	3/31/2011	 	
 	 	 	
Net income attributable to Piedmont	  	$	37,227	  	 	$	33,967	  	
 	 	 	
Depreciation (1) (2)	  	 	27,809	  	 	 	27,154	  	
Amortization (1)	  	 	12,840	  	 	 	12,106	  	
Gain on sale of real estate assets (1)	  	 	(17,830	) 	 	 	—  	  	
Gain on consolidation of variable interest entity	  	 	—  	  	 	 	(1,920	) 	
 	  	 	 	 	 	 	 	 	
Funds from operations	  	 	60,046	  	 	 	71,307	  	
 	 	 	
Acquisition costs	  	 	(3	) 	 	 	(26	) 	
 	  	 	 	 	 	 	 	 	
Core funds from operations	  	 	60,043	  	 	 	71,281	  	
 	 	 	
Depreciation of non real estate assets	  	 	93	  	 	 	170	  	
Stock-based and other non-cash compensation expense	  	 	334	  	 	 	968	  	
Deferred financing cost amortization	  	 	803	  	 	 	607	  	
Straight-line effects of lease revenue (1)	  	 	(1,565	) 	 	 	2,237	  	
Amortization of lease-related intangibles (1)	  	 	(1,532	) 	 	 	(1,363	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	—  	  	 	 	(484	) 	
Acquisition costs	  	 	3	  	 	 	26	  	
Non-incremental capital expenditures(3)	  	 	(8,066	) 	 	 	(17,131	) 	
 	  	 	 	 	 	 	 	 	
Adjusted funds from operations	  	$	50,113	  	 	$	56,311	  	

Weighted average common shares outstanding — diluted	  	 	172,874	  	 	 	172,955	  	
 	 	 	
Funds from operations per share (diluted)	  	$	0.35	  	 	$	0.41	  	
Core funds from operations per share (diluted)	  	$	0.35	  	 	$	0.41	  	
Adjusted funds from operations per share (diluted)	  	$	0.29	  	 	$	0.33	  	
 
(1)	Includes adjustments for wholly-owned properties, including discontinued operations, and for our proportionate ownership in unconsolidated joint ventures.	
(2)	Excludes depreciation of non real estate assets.	
(3)	Capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets’ income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives incurred to lease space that was vacant at acquisition, leasing costs for spaces vacant for greater than one year, leasing costs for spaces at newly acquired properties for which in-place leases expire shortly after acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are excluded from this measure.	
*Definitions
Funds From Operations (“FFO”): FFO is calculated in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property and impairment losses, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. These adjustments can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO may provide valuable comparisons of operating performance between periods and with other REITs. FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income. We believe that FFO is a beneficial indicator of the performance of an equity REIT. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to that of such other REITs.
Core Funds From Operations (“Core FFO”): We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjust for certain non-recurring items such as gains or losses on the early extinguishment of debt, acquisition-related costs, and other extraordinary items. Such items create significant earnings volatility. We believe Core FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs’ equivalent to Core FFO.

Adjusted Funds From Operations (“AFFO”): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and adding back non-cash items including non-real estate depreciation, straight lined rents and fair value lease revenue, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. Although AFFO may not be comparable to that of other REITs, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity.

Piedmont Office Realty Trust, Inc.
Core EBITDA, Core Net Operating Income, Same Store Net Operating Income
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/2012	 	 	3/31/2011	 	
 	 	 	
Net income attributable to Piedmont	  	$	37,227	  	 	$	33,967	  	
 	 	 	
Net income attributable to non-controlling interest	  	 	4	  	 	 	123	  	
Interest Expense	  	 	16,537	  	 	 	17,174	  	
Depreciation(1)	  	 	27,902	  	 	 	27,324	  	
Amortization(1)	  	 	12,840	  	 	 	12,106	  	
Gain on sale of real estate assets(1)	  	 	(17,830	) 	 	 	—  	  	
Gain on consolidation of variable interest entity	  	 	—  	  	 	 	(1,920	) 	
 	  	 	 	 	 	 	 	 	
Core EBITDA*	  	 	76,680	  	 	 	88,774	  	
 	 	 	
General & administrative expenses(1)	  	 	5,318	  	 	 	6,704	  	
Management fee revenue	  	 	(574	) 	 	 	(830	) 	
Interest and other income	  	 	(97	) 	 	 	(3,460	) 	
Lease termination income	  	 	(124	) 	 	 	(3,404	) 	
Lease termination expense — straight line rent & acquisition intangibles write-offs	  	 	100	  	 	 	436	  	
Straight line rent adjustment(1)	  	 	(1,664	) 	 	 	1,972	  	
Net effect of amortization of below-market in-place lease intangibles(1)	  	 	(1,532	) 	 	 	(1,534	) 	
 	  	 	 	 	 	 	 	 	
Core Net Operating Income (cash basis)*	  	 	78,107	  	 	 	88,658	  	
 	 	 	
Acquisitions	  	 	(3,150	) 	 	 	2	  	
Dispositions	  	 	(954	) 	 	 	(7,327	) 	
Industrial properties	  	 	(242	) 	 	 	(237	) 	
Unconsolidated joint ventures	  	 	(590	) 	 	 	(658	) 	

Same Store NOI*	  	$	73,171	  	 	$	80,438	  	

Change period over period in same store NOI	  	 	-9.0	% 	 	 	 	 	
 	 	 	
Fixed Charge Coverage Ratio (Core EBITDA/ Interest Expense)(2)	  	 	4.6	  	 	 	 	 	
Annualized Core EBITDA (Core EBITDA x 4)	  	$	306,720	  	 	 	 	 	
 
(1)	Includes amounts attributable to wholly-owned properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.	
(2) 	Piedmont had no capitalized interest, principal amortization or preferred dividends for any of the periods presented.	
*Definitions
Core EBITDA: Defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property, or other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe Core EBITDA is a reasonable measure of our liquidity. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate Core EBITDA differently and our calculation should not be compared to that of other REITs.
Core net operating income (“Core NOI”): Core NOI is defined as real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income and expense associated with lease terminations and income associated with property management performed by Piedmont for other organizations. We present this measure on a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Core NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
Same store net operating income (“Same Store NOI”): Same Store NOI is calculated as the Core NOI attributable to the properties owned or placed in service during the entire span of the current and prior year reporting periods. Same Store NOI excludes amounts attributable to industrial properties and unconsolidated joint venture assets. We present this measure on a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.

Exhibit 99.2

Quarterly Supplemental Information
March 31, 2012

 	 	 	 	 	
Corporate Headquarters	  	Institutional Analyst Contact	  	Investor Relations	
 	 	 	
11695 Johns Creek Parkway, Suite 350	  	Telephone: 770.418.8592	  	Telephone: 866.354.3485	
Johns Creek, GA 30097	  	research.analysts@piedmontreit.com	  	investor.services@piedmontreit.com	
Telephone: 770.418.8800	  	 	  	www.piedmontreit.com	

Piedmont Office Realty Trust, Inc.
Quarterly Supplemental Information
Index

 
 	 	 	
 	  	Page	
 	 	
Introduction	  	 	
Corporate Data	  	3	
Investor Information	  	4	
Financial Highlights	  	5-8	
Key Performance Indicators	  	9	
 	 	
Financials	  	 	
Balance Sheet	  	10	
Income Statements	  	11-12	
Funds From Operations / Adjusted Funds From Operations	  	13	
Same Store Analysis	  	14-15	
Capitalization Analysis	  	16	
Debt Summary	  	17	
Debt Detail	  	18	
Debt Analysis	  	19	
 	 	
Operational & Portfolio Information - Office Investments	  	 	
Tenant Diversification	  	20	
Tenant Credit Rating & Lease Distribution Information	  	21	
Leased Percentage Information	  	22	
Rental Rate Roll Up / Roll Down Analysis	  	23	
Lease Expiration Schedule	  	24	
Quarterly Lease Expirations	  	25	
Annual Lease Expirations	  	26	
Capital Expenditures & Commitments	  	27	
Contractual Tenant Improvements & Leasing Commissions	  	28	
Geographic Diversification	  	29	
Geographic Diversification by Location Type	  	30	
Industry Diversification	  	31	
Property Investment Activity	  	32	
Value-Add Activity	  	33	
 	 	
Other Investments	  	 	
Other Investments Detail	  	34	
 	 	
Supporting Information	  	 	
Definitions	  	35-36	
Research Coverage	  	37	
Non-GAAP Reconciliations & Other Detail	  	38-41	
Property Detail	  	42-43	
Risks, Uncertainties and Limitations	  	44	

Please refer to page 44 for a discussion of important risks related to the business of Piedmont Office Realty Trust, as well as an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information. Considering these risks, uncertainties, assumptions, and limitations, the forward-looking events contained in this supplemental reporting package might not occur.
Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. In addition, many of the schedules herein contain rounding to the nearest thousands or millions and, therefore, the schedules may not total due to this rounding convention.

Piedmont Office Realty Trust, Inc.
Corporate Data

Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE: PDM) is a fully-integrated and self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located predominantly in large U.S. office markets and leased principally to high-credit-quality tenants. Approximately 82% of our Annualized Lease Revenue (“ALR”) (1)  is derived from our office properties located within the ten largest U.S. office markets, including Chicago, Washington, D.C., the New York metropolitan area, Boston and greater Los Angeles. Since its first acquisition in 1998, the Company has acquired $5.9 billion of office and industrial properties (inclusive of joint ventures) through March 31, 2012. Rated as an investment-grade company by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring its properties.
This data supplements the information provided in our reports filed with the Securities and Exchange Commission and should be reviewed in conjunction with such filings.

 	  	As of
    March 31, 2012    	 	  	 	  	As of
    December 31, 2011    	 	
 	 	 	 	
Number of consolidated office properties (2)	  	 	75	  	  	 	  	 	79	  	
 	 	 	 	
Rentable square footage (in thousands) (2)	  	 	20,617	  	  	 	  	 	20,942	  	
 	 	 	 	
Percent leased (3)	  	 	84.4%	  	  	 	  	 	86.5%	  	
 	 	 	 	
Percent leased - stabilized portfolio (4)	  	 	87.5%	  	  	 	  	 	89.1%	  	
 	 	 	 	
Capitalization (in thousands):	  	 	 	 	  	 	  	 	 	 	
 	 	 	 	
Total debt - principal amount outstanding	  	 	$1,352,525	  	  	 	  	 	$1,472,525	  	
 	 	 	 	
Equity market capitalization (5)	  	 	$3,064,178	  	  	 	  	 	$2,941,611	  	
 	 	 	 	
Total market capitalization (5)	  	 	$4,416,703	  	  	 	  	 	$4,414,136	  	
 	 	 	 	
Total debt / Total market capitalization	  	 	30.6%	  	  	 	  	 	33.4%	  	
 	 	 	 	
Total debt / Total gross assets	  	 	25.7%	  	  	 	  	 	27.5%	  	
 	 	 	 	
Common stock data	  	 	 	 	  	 	  	 	 	 	
 	 	 	 	
High closing price during quarter	  	 	$18.91	  	  	 	  	 	$17.50	  	
 	 	 	 	
Low closing price during quarter	  	 	$17.18	  	  	 	  	 	$15.42	  	
 	 	 	 	
Closing price of common stock at period end	  	 	$17.75	  	  	 	  	 	$17.04	  	
 	 	 	 	
Weighted average fully diluted shares outstanding (in thousands) (6)	  	 	172,874	  	  	 	  	 	172,981	  	
 	 	 	 	
Shares of common stock issued and outstanding (in thousands)	  	 	172,630	  	  	 	  	 	172,630	  	
 	 	 	 	
Rating / outlook	  	 	 	 	  	 	  	 	 	 	
Standard & Poor’s	  	 	BBB/Stable	  	  	 	  	 	BBB/Stable	  	
Moody’s	  	 	Baa2/Stable	  	  	 	  	 	Baa2/Stable	  	
 	 	 	 	
Employees	  	 	117	  	  	 	  	 	116	  	

 
(1) 	The definition for Annualized Lease Revenue can be found on page 35.	
(2) 	As of March 31, 2012, our consolidated office portfolio consisted of 75 properties (exclusive of our equity interests in five properties owned through unconsolidated joint ventures and our two industrial properties). During the first quarter of 2012, we sold our portfolio of assets located in the Portland, OR market, comprised of four office properties totaling 326,000 square feet and developable land totaling 18.2 acres. For additional detail on asset transactions during the first quarter of 2012, please refer to page 32.	
(3) 	Calculated as leased square footage on March 31, 2012 plus square footage associated with executed new leases for currently vacant spaces divided by total rentable square footage, expressed as a percentage. This measure is presented for our 75 office properties and excludes industrial and unconsolidated joint venture properties. Please refer to page 22 for additional analyses regarding Piedmont's leased percentage.	
(4) 	Please refer to page 33 for information regarding value-add properties, data for which is removed from stabilized portfolio totals.	
(5) 	Based on a share price of $17.75 as of March 30, 2012.	
(6) 	Weighted average fully diluted shares outstanding are presented on a year-to-date basis for each period.	
 
3

Piedmont Office Realty Trust, Inc.
Investor Information

Corporate
 
11695 Johns Creek Parkway, Suite 350, Johns Creek, Georgia 30097
770.418.8800
www.piedmontreit.com
Executive and Senior Management

 	 	 	
Donald A. Miller, CFA	  	Robert E. Bowers	  	Laura P. Moon	
Chief Executive Officer, President
and Director	  	Chief Financial Officer, Executive
Vice President, Secretary, and
Treasurer	  	Chief Accounting Officer and
Senior Vice President	
 	 	 	
Raymond L. Owens	  	Carroll A. Reddic, IV	  	 	
Executive Vice President - Capital
Markets	  	Executive Vice President - Real
Estate Operations, Assistant
Secretary	  	 	
Board of Directors

 	 	 	
W. Wayne Woody	  	Frank C. McDowell	  	Donald A. Miller, CFA	
Director, Chairman of the
Board of Directors and Chairman
of Audit Committee	  	Director and Vice Chairman of the
Board of Directors	  	Chief Executive Officer, President and
Director	
 	 	 	
Michael R. Buchanan	  	Wesley E. Cantrell	  	Donald S. Moss	
Director and Chairman of
Capital Committee	  	Director and Chairman of Governance
Committee	  	Director and Chairman of
Compensation Committee	
 	 	 	
William H. Keogler, Jr.	  	Raymond G. Milnes, Jr.	  	Jeffery L. Swope	
Director	  	Director	  	Director	

Transfer Agent	 	 	  	Corporate Counsel	
 	 	 	
Bank of New York Mellon Shareowner Services	 	 	  	King & Spalding	
P.O. Box 358010
Pittsburgh, PA 15252-8010
Phone: 866.354.3485	 	 	  	1180 Peachtree Street, NE
Atlanta, GA 30309
Phone: 404.572.4600	
 
4

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of March 31, 2012

 
 	
Financial Results (1)                    	
- Funds from operations (FFO) for the quarter ended March 31, 2012 was $60.0 million, or $0.35 per share (diluted), compared to $71.3 million, or $0.41 per share (diluted), for the same quarter in 2011. The decrease in FFO for the three months ended March 31, 2012 as compared to the same period in 2011 was principally related to three factors: 1) decreased operating income due to the disposition of certain assets with meaningful operating income contributions, notably 35 West Wacker Drive, and lower overall leased percentage in 2012 as compared to 2011, offset somewhat by operating income contributions from newly acquired assets, 2) reduced termination fee income of $3.3 million in 2012 as compared to 2011, and 3) the one-time recognition in 2011 of $2.6 million of deferred operating income from the 500 West Monroe Street property related to the conversion of our mezzanine loan investment collateralized by equity ownership of the building to an owned property through foreclosure. The items contributing to the reduction in FFO in 2012 as compared to 2011 are offset somewhat by $1.4 million of reduced General & Administrative expenses related primarily to increased legal expense reimbursements in 2012 as compared to 2011.
 
- Core funds from operations (Core FFO) for the quarter ended March 31, 2012 was $60.0 million, or $0.35 per share (diluted), compared to $71.3 million, or $0.41 per share (diluted), for the same quarter in 2011. The decrease in Core FFO for the three months ended March 31, 2012 as compared to the same period in 2011 was principally related to the items described for changes in FFO above.
 
- Adjusted funds from operations (AFFO) for the quarter ended March 31, 2012 was $50.1 million, or $0.29 per share (diluted), compared to $56.3 million, or $0.33 per share (diluted), for the same quarter in 2011. The decrease in AFFO for the three months ended March 31, 2012 as compared to the same period in 2011 was primarily related to the items described above for the FFO variance, offset somewhat by a decrease in non-incremental capital expenditures in 2012 as compared to 2011.
 
- During the quarter ended March 31, 2012, the Company paid to shareholders a quarterly dividend in the amount of $0.20 per share for its common stock. The Company’s dividend payout percentage for the three months ended March 31, 2012 was 58% of Core FFO and 69% of AFFO. The dividend was reduced from an annualized $1.26 per share to $0.80 per share, an approximate $80 million reduction per annum.	
 	
Operations                                     	
- On a square footage leased basis, our total office portfolio was 84.4% leased as of March 31, 2012, as compared to 86.5% as of December 31, 2011. On a stabilized square footage leased basis, our portfolio was 87.5% leased as of March 31, 2012, as compared to 89.1% leased as of December 31, 2011. The stabilized leased percentage excludes the impact of value-add acquisitions (see page 33) that have not yet reached stabilization, including 500 West Monroe Street in Chicago, IL, 1200 Enclave Parkway in Houston, TX, The Medici in Atlanta, GA, Suwanee Gateway One in Suwanee, GA, and 400 TownPark in Lake Mary, FL. The primary reason for the decline in the leased rate for our stabilized assets between December 31, 2011 and March 31, 2012 is the net reduction of 221,000 leased square feet associated with the Sanofi-aventis US lease expiration at 200 Bridgewater Crossing in Bridgewater, NJ and the net reduction of approximately 121,000 leased square feet associated with the Marsh USA lease expiration at 500 West Monroe Street in Chicago, IL. Please refer to page 22 for additional information.
 
- The weighted average remaining lease term of our portfolio was 6.6 years(2) as of March 31, 2012 as compared to 6.4 years at December 31, 2011.
 
- During the three months ended March 31, 2012, the Company completed 810,000 square feet of leasing at our properties, inclusive of our industrial and joint venture assets. Of the total leasing activity during the quarter, we signed renewal leases for 348,000 square feet and new tenant leases for 462,000 square feet. Leases for approximately 437,000 square feet were signed for our wholly-owned office properties with an average committed capital cost of $3.15 per square foot per year of lease term. Average committed capital cost per square foot per year of lease term for renewal leases signed during the quarter ended March 31, 2012 was $0.53 and average committed capital cost per square foot per year of lease term for new leases signed during the same time period was $4.98.	
 
(1) FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See pages 35-36 for definitions of non-GAAP financial measures. See pages 13 and 38 for reconciliations of FFO, Core FFO and AFFO to Net Income.
(2) Remaining lease term (after taking into account leases for vacant spaces which had been executed but not commenced as of March 31, 2012) is weighted based on Annualized Lease Revenue, as defined on page 35.	
 
5

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of March 31, 2012

 
 	-	During the three months ended March 31, 2012, we executed six leases greater than 20,000 square feet. Please see information on those leases listed below.	

 Tenant Name	  	Property	  	Property Location	  	Square Feet
Leased	  	  	  	Expiration Year	  	Lease Type	
 L. Perrigo Company	  	110 Hidden Lake Circle	  	Greenville, SC	  	300,000	  	 	  	2019	  	New (Industrial)	
 SSB Realty, LLC	  	1200 Crown Colony Drive	  	Quincy, MA	  	234,668	  	 	  	2024	  	Renewal	
 Savient Pharmaceuticals, Inc.	  	400 Bridgewater Crossing	  	Bridgewater, NJ	  	48,469	  	 	  	2022	  	New	
 Bipartisan Policy Center, Inc.	  	1225 Eye Street	  	Washington, D.C.	  	38,092	  	 	  	2022	  	Renewal / Expansion	
 Hospital Management Association	  	Sarasota Commerce Center II	  	Sarasota, FL	  	26,957	  	 	  	2020	  	New	
 Ingrace’s Company III, Inc.	  	Aon Center	  	Chicago, IL	  	21,086	  	 	  	2022	  	New	
Leasing Update                                        
 
 	-	As of December 31, 2011, there were five tenants whose leases contributed greater than 1% to our Annualized Lease Revenue and were scheduled to expire during the first quarter of 2012 or the eighteen month period following the end of the first quarter of 2012. Information regarding the leasing status of the spaces associated with those tenants' leases is presented below.	

Tenant Name	 	Property	 	Property Location	 	Square
Footage  (1)	 	Percentage of Current
Quarter Annualized Lease
Revenue (%)	 	Expiration (2)	  	Current Leasing Status	
Kirkland & Ellis	 	Aon Center	 	Chicago, IL	 	331,887	 	0.0%	 	N/A	  	The tenant vacated at lease expiration. KPMG has leased 69% of the space previously leased to Kirkland & Ellis beginning in August 2012. United Healthcare has leased 16% of the space previously leased to Kirkland & Ellis beginning in September 2012. The remaining 15% of the Kirkland & Ellis space is being actively marketed for lease.	
Marsh USA	 	500 West Monroe
Street	 	Chicago, IL	 	173,290	 	0.0%	 	N/A	  	The tenant vacated at lease expiration. Approximately 53,000 square feet of Marsh’s space has been leased by GE; GE has the option during the first two years of the new lease term to expand up to an additional 81,000 square feet in space formerly occupied by Marsh. The Company is actively marketing the uncommitted space for lease.	
Sanofi—aventis US	 	200 Bridgewater
Crossing	 	Bridgewater, NJ	 	221,491	 	0.0%	 	N/A	  	The tenant vacated at lease expiration. The Company is in advanced negotiations with three tenants to lease a majority of the space previously leased by Sanofi that has not yet been re-leased.	
 	 	400 Bridgewater
Crossing	 	Bridgewater, NJ	 	77,803	 	0.0%	 	N/A	  	The tenant vacated at lease expiration. The Company has fully leased all space previously leased by the tenant at the building.	
United States of America (National Park Service)	 	1201 Eye Street	 	Washington, D.C.	 	219,750	 	1.9%	 	Q3 2012	  	The Company is awaiting the release of the Congressionally-approved solicitation for offers from the GSA, a key component of the Government’s space acquisition process. The Company anticipates the National Park Service to holdover in its existing space while the GSA negotiates the National Park Service's future lease.	
Comptroller of the Currency	 	One
Independence
Square	 	Washington, D.C.	 	333,815	 	3.7%	 	Q2 2013	  	The tenant is expected to vacate at lease expiration. The Company is actively marketing the space for lease.	

(1) Square footage represents the total square footage leased by the tenant at the building expiring during the expiration quarter.
(2) The lease expiration date presented is that of the majority of the space leased to the tenant at the building.
 
6

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of March 31, 2012

 
 	-	Piedmont typically signs leases several months in advance of their anticipated lease commencement dates. Presented below is a schedule of uncommenced leases greater than 50,000 square feet and their anticipated commencement dates.	

Tenant Name	  	Property	  	Property Location	  	Square Feet
Leased	  	  	  	Estimated
Commencement Date	  	New / Expansion	
Synchronoss Technologies, Inc.	  	200 Bridgewater Crossing	  	Bridgewater, NJ	  	78,581	  	 	  	Q2 2012	  	New	
US Foods, Inc.	  	River Corporate Center	  	Tempe, AZ	  	133,225	  	 	  	Q2 2012	  	New	
KPMG	  	Aon Center	  	Chicago, IL	  	235,189	  	 	  	Q3 2012	  	New	
United Healthcare Services, Inc.	  	Aon Center	  	Chicago, IL	  	54,634	  	 	  	Q3 2012	  	New	
GE (1)	  	500 West Monroe Street	  	Chicago, IL	  	86,028	  	 	  	Q4 2012 - Q4 2014	  	Expansion	
Thoughtworks, Inc.	  	Aon Center	  	Chicago, IL	  	52,529	  	 	  	Q4 2013	  	New	
Federal Home Loan Bank of Chicago	  	Aon Center	  	Chicago, IL	  	63,402	  	 	  	Q4 2013	  	New	
Integrys Business Support, LLC	  	Aon Center	  	Chicago, IL	  	149,432	  	 	  	Q2 2014	  	New	
(1) The square footage presented includes the 19th floor premises, which is currently leased by GE. GE will not lease that space upon the commencement of the renewal term, but it is required to lease that space one year after the commencement of the renewal term.
Financing and Capital Activity            
 	-	As of March 31, 2012, our ratio of debt to total gross assets was 25.7%, our ratio of debt to gross real estate assets was 29.5%, and our ratio of debt to total market capitalization was 30.6%. These debt ratios are based on total principal amount outstanding for our various loans at March 31, 2012. Subsequent to quarter end, we repaid the $45 million loan secured by 4250 North Fairfax Drive in Arlington, VA. Our pro forma leverage ratios, after adjusting for the repayment of that debt and assuming that $25 million of repayment proceeds was from cash, are: 25.4% for debt to total gross assets, 28.9% for debt to gross real estate assets, and 30.2% for debt to total market capitalization.	
 
 	-	On March 19, 2012, Piedmont completed the sale of its properties in Beaverton, OR, allowing the Company to exit the Portland, OR market and further its strategic objective of focusing on select markets. The properties, which were sold for $43.9 million, were comprised of approximately 326,000 square feet of office space and 18.2 acres of developable land. The operating income for the assets is presented in discontinued operations. Piedmont recorded a gain on the sale of properties of $17.8 million. As part of the sale transaction, Piedmont provided $19 million in seller financing to the buyer, NIKE, Inc. The interest-only loan to NIKE bears interest at 8.73% and has a maturity date of October 31, 2012.	
 
 	-	On January 9, 2012, Piedmont repaid a $140 million loan secured by 500 West Monroe Street in Chicago, IL. The loan was open to prepayment without any yield maintenance requirements. The repayment of the loan allowed Piedmont to further its strategic objective of decreasing its secured debt borrowings in relation to its total borrowings.	
 
 	-	On February 28, 2012, the Board of Directors of Piedmont declared dividends for the first quarter of 2012 in the amount of $0.20 per common share outstanding to stockholders of record as of the close of business on March 9, 2012. The dividends were paid on March 22, 2012.	
 
7

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of March 31, 2012

 
 	-	During the first quarter of 2012, no additional purchases were made under the company’s stock repurchase program. Since the program’s inception last fall, the Company has repurchased a total of 199,400 shares at an average price of $16.24 per share. Any future repurchases of the Company’s common stock will be made at the discretion of the Company.	
 
 	-	The trial date for the ongoing shareholder litigation has been postponed. Piedmont believes that the case is without merit and intends to continue to vigorously defend the complaint. See Piedmont’s Form 10-Q dated as of March 31, 2012 for further disclosure.	
Subsequent Events                              
 
 	-	On May 1, 2012, Piedmont repaid a $45 million loan secured by 4250 North Fairfax Drive in Arlington, VA. The loan was open to prepayment without any yield maintenance requirements. The repayment of the loan allowed Piedmont to further its strategic objective of decreasing its secured debt borrowings in relation to its total borrowings. Please see Financing and Capital Activity above for pro forma leverage ratios, which take into account the repayment of this debt.	
 
 	-	On May 2, 2012, the Board of Directors of Piedmont declared dividends for the second quarter of 2012 in the amount of $0.20 per common share outstanding to stockholders of record as of the close of business on June 1, 2012. The dividends are to be paid on June 22, 2012.	
Guidance for 2012                               
 
 	-	The following financial guidance for calendar year 2012 remains unchanged and is based on management’s expectations at this time:	

 	  	Low        High	
Core Funds from Operations	  	$234   -  $250 million	
Core Funds from Operations per diluted share	  	$1.35  -  $1.45	
These estimates reflect management’s view of current market conditions and incorporate certain economic and operational assumptions and projections, including the disposition of 35 West Wacker Drive which contributed approximately $0.13 per share of funds from operations in 2011. Actual results could differ from these estimates. Note that individual quarters may fluctuate on both a cash and an accrual basis due to the timing of lease commencements and expirations, repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this supplemental report.
 
8

Piedmont Office Realty Trust, Inc.
Key Performance Indicators
Unaudited (in thousands except for per share data)

This section of our supplemental report includes non-GAAP financial measures, including, but not limited to, Core Earnings Before Interest, Taxes, Depreciation, and Amortization (Core EBITDA), Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO). Definitions of these non-GAAP measures are provided on pages 35-36 and reconciliations are provided on pages 38-40.

 	 	Three Months Ended	 	
 
 Selected Operating Data	 	 
      3/31/2012      	 	 	 
      12/31/2011      	 	 	 
      9/30/2011      	 	 	 
      6/30/2011      	 	 	 
      3/31/2011      	 	
 	 	 	 	 	 	
Percent leased (1)	 	 	84.4%	  	 	 	86.5%	  	 	 	86.4%	  	 	 	86.5%	  	 	 	87.3%	  	
 	 	 	 	 	 	
Percent leased - stabilized portfolio (1) (2)	 	 	87.5%	  	 	 	89.1%	  	 	 	88.8%	  	 	 	89.0%	  	 	 	89.4%	  	
 	 	 	 	 	 	
Rental income	 	 	$105,758	  	 	 	$106,447	  	 	 	$104,936	  	 	 	$103,681	  	 	 	$100,322	  	
 	 	 	 	 	 	
Total revenues	 	 	$133,197	  	 	 	$136,478	  	 	 	$133,307	  	 	 	$136,054	  	 	 	$131,450	  	
 	 	 	 	 	 	
Total operating expenses	 	 	$98,284	  	 	 	$103,706	  	 	 	$96,568	  	 	 	$100,221	  	 	 	$90,804	  	
 	 	 	 	 	 	
Real estate operating income	 	 	$34,913	  	 	 	$32,772	  	 	 	$36,739	  	 	 	$35,833	  	 	 	$40,646	  	
 	 	 	 	 	 	
Core EBITDA	 	 	$76,680	  	 	 	$82,523	  	 	 	$86,941	  	 	 	$84,729	  	 	 	$88,774	  	
 	 	 	 	 	 	
Core FFO	 	 	$60,043	  	 	 	$65,270	  	 	 	$69,203	  	 	 	$65,843	  	 	 	$71,281	  	
 	 	 	 	 	 	
Core FFO per share - diluted	 	 	$0.35	  	 	 	$0.38	  	 	 	$0.40	  	 	 	$0.38	  	 	 	$0.41	  	
 	 	 	 	 	 	
AFFO	 	 	$50,113	  	 	 	$44,728	  	 	 	$50,988	  	 	 	$50,578	  	 	 	$56,311	  	
 	 	 	 	 	 	
AFFO per share - diluted	 	 	$0.29	  	 	 	$0.26	  	 	 	$0.29	  	 	 	$0.29	  	 	 	$0.33	  	
 	 	 	 	 	 	
Gross dividends	 	 	$34,526	  	 	 	$54,441	  	 	 	$54,441	  	 	 	$54,440	  	 	 	$54,387	  	
 	 	 	 	 	 	
Dividends per share	 	 	$0.200	  	 	 	$0.315	  	 	 	$0.315	  	 	 	$0.315	  	 	 	$0.315	  	
 	 	 	 	 	 	
 Selected Balance Sheet Data	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	
Total real estate assets	 	 	$3,657,677	  	 	 	$3,704,051	  	 	 	$3,926,638	  	 	 	$3,899,639	  	 	 	$3,892,087	  	
 	 	 	 	 	 	
Total gross real estate assets	 	 	$4,590,544	  	 	 	$4,615,812	  	 	 	$4,875,854	  	 	 	$4,828,700	  	 	 	$4,804,988	  	
 	 	 	 	 	 	
Total assets	 	 	$4,326,698	  	 	 	$4,447,834	  	 	 	$4,613,118	  	 	 	$4,560,206	  	 	 	$4,563,272	  	
 	 	 	 	 	 	
Net debt (3)	 	 	$1,298,738	  	 	 	$1,323,796	  	 	 	$1,600,650	  	 	 	$1,583,812	  	 	 	$1,529,603	  	
 	 	 	 	 	 	
Total liabilities	 	 	$1,550,040	  	 	 	$1,674,406	  	 	 	$1,896,195	  	 	 	$1,838,983	  	 	 	$1,809,755	  	
 	 	 	 	 	 	
 Ratios	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	
Core EBITDA margin (4)	 	 	57.1%	  	 	 	55.8%	  	 	 	59.8%	  	 	 	56.1%	  	 	 	60.6%	  	
 	 	 	 	 	 	
Fixed charge coverage ratio (5) (6)	 	 	4.6 x	  	 	 	4.7 x	  	 	 	4.9 x	  	 	 	4.4 x	  	 	 	5.2 x	  	
 	 	 	 	 	 	
Net debt to core EBITDA (6) (7)	 	 	4.2 x	  	 	 	4.0 x	  	 	 	4.6 x	  	 	 	4.7 x	  	 	 	4.3 x	  	

(1) Please refer to page 22 for additional leased percentage information.
(2) Please refer to page 33 for additional information on value-add properties, data for which is removed from stabilized portfolio totals.
(3) Net debt is calculated as the total principal amount of debt outstanding minus cash and cash equivalents and escrow deposits and restricted cash. As of the first quarter of 2011, net debt includes $185 million of secured debt associated with 500 West Monroe Street which was acquired March 31, 2011; $45 million of that debt was repaid during the fourth quarter of 2011 and the remaining $140 million was repaid during the first quarter of 2012. Each quarter prior to the fourth quarter of 2011 includes $120 million of debt associated with 35 West Wacker Drive, an asset sold in December 2011.
(4) Core EBITDA margin is calculated as Core EBITDA divided by total revenues (including revenues associated with discontinued operations).
(5) The fixed charge coverage ratio is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. The Company had no capitalized interest, principal amortization or preferred dividends during any of the periods presented.
(6) The change in Piedmont’s debt coverage ratios during 2011 was primarily attributable to $185 million of additional debt assumed with the acquisition of 500 West Monroe Street in March 2011 and the related interest expense; $45 million of this debt was repaid on November 17, 2011, and the remaining $140 million was repaid on January 9, 2012.
(7) Core EBITDA is annualized for the purposes of this calculation.
 
9

Piedmont Office Realty Trust, Inc.
Consolidated Balance Sheets
Unaudited (in thousands)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	  March 31, 2012  	 	 	  December 31, 2011  	 	 	  September 30, 2011  	 	 	  June 30, 2011  	 	 	  March 31, 2011  	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate, at cost:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Land assets	 	  $	631,745 	  	 	  $	640,196 	  	 	  $	693,229 	  	 	  $	693,962 	  	 	  $	688,103 	  	
Buildings and improvements	 	 	3,750,475 	  	 	 	3,759,596 	  	 	 	3,930,126 	  	 	 	3,894,258 	  	 	 	3,865,239 	  	
Buildings and improvements, accumulated depreciation	 	 	(813,679)	  	 	 	(792,342)	  	 	 	(807,917)	  	 	 	(792,881)	  	 	 	(770,147)	  	
Intangible lease asset	 	 	191,599 	  	 	 	198,667 	  	 	 	232,973 	  	 	 	225,182 	  	 	 	238,504 	  	
Intangible lease asset, accumulated amortization	 	 	(119,188)	  	 	 	(119,419)	  	 	 	(141,299)	  	 	 	(136,180)	  	 	 	(142,754)	  	
Construction in progress	 	 	16,725 	  	 	 	17,353 	  	 	 	19,526 	  	 	 	15,298 	  	 	 	13,142 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	 	 	3,657,677 	  	 	 	3,704,051 	  	 	 	3,926,638 	  	 	 	3,899,639 	  	 	 	3,892,087 	  	
Investment in unconsolidated joint ventures	 	 	37,901 	  	 	 	38,181 	  	 	 	38,391 	  	 	 	41,271 	  	 	 	41,759 	  	
Cash and cash equivalents	 	 	28,679 	  	 	 	139,690 	  	 	 	16,128 	  	 	 	21,404 	  	 	 	42,151 	  	
Tenant receivables, net of allowance for doubtful accounts	 	 	24,932 	  	 	 	24,722 	  	 	 	32,066 	  	 	 	31,143 	  	 	 	29,726 	  	
Straight line rent receivable	 	 	106,723 	  	 	 	104,801	  	 	 	110,818 	  	 	 	107,463 	  	 	 	103,854 	  	
Notes receivable	 	 	19,000 	  	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	-     	  	
Due from unconsolidated joint ventures	 	 	449 	  	 	 	788 	  	 	 	643 	  	 	 	537 	  	 	 	594 	  	
Escrow deposits and restricted cash	 	 	25,108 	  	 	 	9,039 	  	 	 	47,747 	  	 	 	32,309 	  	 	 	30,771 	  	
Prepaid expenses and other assets	 	 	12,477 	  	 	 	9,911 	  	 	 	13,978 	  	 	 	14,577 	  	 	 	11,967 	  	
Goodwill	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	
Deferred financing costs, less accumulated amortization	 	 	5,187 	  	 	 	5,977 	  	 	 	4,788 	  	 	 	4,396 	  	 	 	5,374 	  	
Deferred lease costs, less accumulated amortization	 	 	228,468 	  	 	 	230,577 	  	 	 	241,824 	  	 	 	227,370 	  	 	 	224,892 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	  $	4,326,698 	  	 	  $	4,447,834 	  	 	  $	4,613,118 	  	 	  $	4,560,206 	  	 	  $	4,563,272 	  	

Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Line of credit and notes payable	 	  $	1,352,525 	  	 	  $	1,472,525 	  	 	  $	1,664,525 	  	 	  $	1,637,054 	  	 	  $	1,601,112 	  	
Accounts payable, accrued expenses, and accrued capital expenditures             	 	 	116,292 	  	 	 	122,986 	  	 	 	143,106 	  	 	 	126,111 	  	 	 	122,769 	  	
Deferred income	 	 	32,031 	  	 	 	27,321 	  	 	 	32,514 	  	 	 	32,161 	  	 	 	38,990 	  	
Intangible lease liabilities, less accumulated amortization	 	 	46,640 	  	 	 	49,037 	  	 	 	56,050 	  	 	 	43,657 	  	 	 	46,517 	  	
Interest rate swap	 	 	2,552 	  	 	 	2,537 	  	 	 	-     	  	 	 	-     	  	 	 	367 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	1,550,040 	  	 	 	1,674,406 	  	 	 	1,896,195 	  	 	 	1,838,983 	  	 	 	1,809,755 	  	
 	 	 	 	 	 	
Stockholders’ equity:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common stock	 	 	1,726 	  	 	 	1,726 	  	 	 	1,728 	  	 	 	1,728 	  	 	 	1,727 	  	
Additional paid in capital	 	 	3,664,202 	  	 	 	3,663,662 	  	 	 	3,663,155 	  	 	 	3,662,522 	  	 	 	3,661,570 	  	
Cumulative distributions in excess of earnings	 	 	(888,331)	  	 	 	(891,032)	  	 	 	(952,370)	  	 	 	(948,956)	  	 	 	(915,543)	  	
Other comprehensive loss	 	 	(2,552)	  	 	 	(2,537)	  	 	 	-     	  	 	 	(44)	  	 	 	(465)	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	 	 	2,775,045 	  	 	 	2,771,819 	  	 	 	2,712,513 	  	 	 	2,715,250 	  	 	 	2,747,289 	  	
Non-controlling interest	 	 	1,613 	  	 	 	1,609 	  	 	 	4,410 	  	 	 	5,973 	  	 	 	6,228 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity	 	 	2,776,658 	  	 	 	2,773,428 	  	 	 	2,716,923 	  	 	 	2,721,223 	  	 	 	2,753,517 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	 	  $	4,326,698 	  	 	  $	4,447,834 	  	 	  $	4,613,118 	  	 	  $	4,560,206 	  	 	  $	4,563,272 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common stock outstanding at end of period	 	 	172,630 	  	 	 	172,630 	  	 	 	172,827 	  	 	 	172,827 	  	 	 	172,658 	  	

 
10

Piedmont Office Realty Trust, Inc.
Consolidated Statements of Income
Unaudited (in thousands except for per share data)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	 	 	 	
 	  	        3/31/2012        	 	  	        12/31/2011        	 	  	        9/30/2011        	 	  	        6/30/2011        	 	  	        3/31/2011            	 	

Revenues:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Rental income	  	    $	105,758 	  	  	    $	106,447 	  	  	    $	104,936 	  	  	    $	103,681 	  	  	    $	100,322 	  	
Tenant reimbursements	  	 	26,741 	  	  	 	29,431 	  	  	 	28,294 	  	  	 	30,663 	  	  	 	26,894 	  	
Property management fee revenue	  	 	574 	  	  	 	281 	  	  	 	110 	  	  	 	363 	  	  	 	830 	  	
Other rental income	  	 	124 	  	  	 	319 	  	  	 	(33)	  	  	 	1,347 	  	  	 	3,404 	  	
 	  	 	 	 	
      Total revenues	  	 	133,197 	  	  	 	136,478 	  	  	 	133,307 	  	  	 	136,054 	  	  	 	131,450 	  	
 	 	 	 	 	 	
Operating expenses:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Property operating costs	  	 	52,782 	  	  	 	55,165 	  	  	 	50,846 	  	  	 	52,986 	  	  	 	48,817 	  	
Depreciation	  	 	27,453 	  	  	 	26,878 	  	  	 	26,155 	  	  	 	25,786 	  	  	 	25,037 	  	
Amortization	  	 	12,792 	  	  	 	15,459 	  	  	 	14,891 	  	  	 	14,107 	  	  	 	10,338 	  	
General and administrative	  	 	5,257 	  	  	 	6,204 	  	  	 	4,676 	  	  	 	7,342 	  	  	 	6,612 	  	
 	  	 	 	 	
      Total operating expenses	  	 	98,284 	  	  	 	103,706 	  	  	 	96,568 	  	  	 	100,221 	  	  	 	90,804 	  	

Real estate operating income	  	 	34,913 	  	  	 	32,772 	  	  	 	36,739 	  	  	 	35,833 	  	  	 	40,646 	  	
 	 	 	 	 	 	
Other income (expense):	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Interest expense	  	 	(16,537)	  	  	 	(16,179)	  	  	 	(16,236)	  	  	 	(17,762)	  	  	 	(15,640)	  	
Interest and other income (expense)	  	 	97 	  	  	 	(357)	  	  	 	(91)	  	  	 	(238)	  	  	 	3,459 	  	
Equity in income of unconsolidated joint ventures	  	 	170 	  	  	 	587 	  	  	 	485 	  	  	 	338 	  	  	 	209 	  	
Gain / (loss) on consolidation of variable interest entity	  	 	-     	  	  	 	-     	  	  	 	-     	  	  	 	(388)	  	  	 	1,920 	  	
Gain / (loss) on extinguishment of debt	  	 	-     	  	  	 	1,039 	  	  	 	-     	  	  	 	-     	  	  	 	-     	  	
 	  	 	 	 	
      Total other income (expense)	  	 	(16,270)	  	  	 	(14,910)	  	  	 	(15,842)	  	  	 	(18,050)	  	  	 	(10,052)	  	

Income from continuing operations	  	 	18,643 	  	  	 	17,862 	  	  	 	20,897 	  	  	 	17,783 	  	  	 	30,594 	  	
 	 	 	 	 	 	
Discontinued operations:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Operating income, excluding impairment loss	  	 	758 	  	  	 	5,261 	  	  	 	3,377 	  	  	 	3,248 	  	  	 	3,377 	  	
Gain / (loss) on sale of properties	  	 	17,830 	  	  	 	95,901 	  	  	 	26,756 	  	  	 	-     	  	  	 	-     	  	
 	  	 	 	 	
      Income / (loss) from discontinued operations (1)	  	 	18,588 	  	  	 	101,162 	  	  	 	30,133 	  	  	 	3,248 	  	  	 	3,377 	  	

Net income	  	 	37,231 	  	  	 	119,024 	  	  	 	51,030 	  	  	 	21,031 	  	  	 	33,971 	  	
 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(4)	  	  	 	(4)	  	  	 	(4)	  	  	 	(4)	  	  	 	(4)	  	

Net income attributable to Piedmont	  	    $	37,227 	  	  	    $	119,020 	  	  	    $	51,026 	  	  	    $	21,027 	  	  	    $	33,967 	  	

Weighted average common shares outstanding - diluted	  	 	172,874 	  	  	 	173,036 	  	  	 	173,045 	  	  	 	172,986 	  	  	 	172,955 	  	
 	 	 	 	 	 	
Net income per share available to common stockholders - diluted                	  	    $	0.22 	  	  	    $	0.69 	  	  	    $	0.29 	  	  	    $	0.12 	  	  	    $	0.20 	  	

 
(1) Reflects operating results for Eastpointe Corporate Center in Issaquah, WA, which was sold on July 1, 2011; 5000 Corporate Court in Holtsville, NY, which was sold on August 31, 2011; 35 West Wacker Drive in Chicago, IL, which was sold on December 15, 2011; and Deschutes, Rhein, Rogue, and Willamette in Beaverton, OR, which were all sold on March 19, 2012.
 
11

Piedmont Office Realty Trust, Inc.
Consolidated Statements of Income
Unaudited (in thousands except for per share data)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	  3/31/2012  	 	 	  3/31/2011  	 	 	  Change  	 	 	  Change  	 	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	 	  $	    105,758  	  	 	  $	    100,322  	  	 	  $	    5,436  	  	 	 	5.4% 	  	
Tenant reimbursements	 	 	26,741  	  	 	 	26,894  	  	 	 	(153) 	  	 	 	-0.6% 	  	
Property management fee revenue	 	 	574  	  	 	 	830  	  	 	 	(256) 	  	 	 	-30.8% 	  	
Other rental income	 	 	124  	  	 	 	3,404  	  	 	 	(3,280) 	  	 	 	-96.4% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	133,197  	  	 	 	131,450  	  	 	 	1,747  	  	 	 	1.3% 	  	
 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	 	 	52,782  	  	 	 	48,817  	  	 	 	(3,965) 	  	 	 	-8.1% 	  	
Depreciation	 	 	27,453  	  	 	 	25,037  	  	 	 	(2,416) 	  	 	 	-9.6% 	  	
Amortization	 	 	12,792  	  	 	 	10,338  	  	 	 	(2,454) 	  	 	 	-23.7% 	  	
General and administrative	 	 	5,257  	  	 	 	6,612  	  	 	 	1,355  	  	 	 	20.5% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	 	98,284  	  	 	 	90,804  	  	 	 	(7,480) 	  	 	 	-8.2% 	  	

Real estate operating income	 	 	34,913  	  	 	 	40,646  	  	 	 	(5,733) 	  	 	 	-14.1% 	  	
 	 	 	 	 	
Other income (expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(16,537) 	  	 	 	(15,640) 	  	 	 	(897) 	  	 	 	-5.7% 	  	
Interest and other income (expense)	 	 	97  	  	 	 	3,459  	  	 	 	(3,362) 	  	 	 	-97.2% 	  	
Equity in income of unconsolidated joint ventures	 	 	170  	  	 	 	209  	  	 	 	(39) 	  	 	 	-18.7% 	  	
Gain / (loss) on consolidation of variable interest entity	 	 	-      	  	 	 	1,920  	  	 	 	(1,920) 	  	 	 	-100.0% 	  	
Gain / (loss) on extinguishment of debt	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	0.0% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	 	 	(16,270) 	  	 	 	(10,052) 	  	 	 	(6,218) 	  	 	 	-61.9% 	  	

Income from continuing operations	 	 	18,643  	  	 	 	30,594  	  	 	 	(11,951) 	  	 	 	-39.1% 	  	
 	 	 	 	 	
Discontinued operations:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	 	 	758  	  	 	 	3,377  	  	 	 	(2,619) 	  	 	 	-77.6% 	  	
Gain / (loss) on sale of properties	 	 	17,830  	  	 	 	-      	  	 	 	17,830  	  	 	 	0.0% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income / (loss) from discontinued operations (1)	 	 	18,588  	  	 	 	3,377  	  	 	 	15,211  	  	 	 	450.4% 	  	

Net income	 	 	37,231  	  	 	 	33,971  	  	 	 	3,260  	  	 	 	9.6% 	  	
 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	 	 	(4) 	  	 	 	(4) 	  	 	 	-      	  	 	 	0.0% 	  	

Net income attributable to Piedmont	 	  $	    37,227  	  	 	  $	    33,967  	  	 	  $	    3,260  	  	 	 	9.6% 	  	

Weighted average common shares outstanding - diluted	 	 	172,874  	  	 	 	172,955  	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	
Net income per share available to common stockholders - diluted	 	  $	    0.22  	  	 	  $	    0.20  	  	 	 	 	 	 	 	 	 	

 
(1) Reflects operating results for Eastpointe Corporate Center in Issaquah, WA, which was sold on July 1, 2011; 5000 Corporate Court in Holtsville, NY, which was sold on August 31, 2011; 35 West Wacker Drive in Chicago, IL, which was sold on December 15, 2011; and Deschutes, Rhein, Rogue, and Willamette in Beaverton, OR, which were all sold on March 19, 2012.
 
12

Piedmont Office Realty Trust, Inc.
Funds From Operations, Core Funds From Operations and Adjusted Funds From Operations
Unaudited (in thousands except for per share data)

 
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	    3/31/2012    	 	 	    3/31/2011    	 	
Net income attributable to Piedmont	 	  $	37,227  	  	 	  $	33,967  	  	
 	 	 	
Depreciation (1) (2)	 	 	27,809  	  	 	 	27,154  	  	
Amortization (1)	 	 	12,840  	  	 	 	12,106  	  	
(Gain) / loss on sale of properties (1)	 	 	(17,830) 	  	 	 	-      	  	
(Gain) / loss on consolidation of VIE	 	 	-      	  	 	 	(1,920) 	  	
 	 	 	 	 	 	 	 	 	
Funds from operations	 	 	60,046  	  	 	 	71,307  	  	
 	 	 	
Acquisition costs	 	 	(3) 	  	 	 	(26) 	  	
 	 	 	 	 	 	 	 	 	
Core funds from operations	 	 	60,043  	  	 	 	71,281  	  	
 	 	 	
Depreciation of non real estate assets	 	 	93  	  	 	 	170  	  	
Stock-based and other non-cash compensation expense	 	 	334  	  	 	 	968  	  	
Deferred financing cost amortization (1)	 	 	803  	  	 	 	607  	  	
Straight-line effects of lease revenue (1)	 	 	(1,565) 	  	 	 	2,237  	  	
Amortization of lease-related intangibles (1)	 	 	(1,532) 	  	 	 	(1,363) 	  	
Income from amortization of discount on purchase of mezzanine loans	 	 	-      	  	 	 	(484) 	  	
Acquisition costs	 	 	3  	  	 	 	26  	  	
Non-incremental capital expenditures (3)	 	 	(8,066) 	  	 	 	(17,131) 	  	
 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	 	  $	50,113  	  	 	  $	56,311  	  	

Weighted average common shares outstanding - diluted	 	 	172,874  	  	 	 	172,955  	  	
 	 	 	
Funds from operations per share (diluted)	 	  $	0.35  	  	 	  $	0.41  	  	
Core funds from operations per share (diluted)	 	  $	0.35  	  	 	  $	0.41  	  	
Adjusted funds from operations per share (diluted)	 	  $	0.29  	  	 	  $	0.33  	  	

 
(1)	Includes adjustments for wholly-owned properties, including discontinued operations, and for our proportionate ownership in unconsolidated joint ventures.	
 
(2)	Excludes depreciation of non real estate assets.	
 
(3)	Non-incremental capital expenditures are defined on page 36. During the third quarter of 2011, Piedmont revised its definitions of incremental and non-incremental capital expenditures in order to conform with the more broadly accepted definitions for such terms by other office REITs. Capital expenditures have been restated for all prior periods in order to provide a consistent basis for comparison.	
 
13

Piedmont Office Realty Trust, Inc.
Same Store Net Operating Income (Cash Basis)
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	    3/31/2012    	 	  	    3/31/2011    	 	
Net income attributable to Piedmont	  	  $	37,227  	  	  	  $	33,967  	  	
 	 	 	
Net income attributable to noncontrolling interest	  	 	4  	  	  	 	123  	  	
Interest expense	  	 	16,537  	  	  	 	17,174  	  	
Depreciation (1)	  	 	27,902  	  	  	 	27,324  	  	
Amortization (1)	  	 	12,840  	  	  	 	12,106  	  	
(Gain) / loss on sale of properties (1)	  	 	(17,830) 	  	  	 	-      	  	
(Gain) / loss on consolidation of VIE	  	 	-      	  	  	 	(1,920) 	  	
 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	76,680  	  	  	 	88,774  	  	
 	 	 	
General & administrative expenses (1)	  	 	5,318  	  	  	 	6,704  	  	
Management fee revenue	  	 	(574) 	  	  	 	(830) 	  	
Interest and other income (1)	  	 	(97) 	  	  	 	(3,460) 	  	
Lease termination income	  	 	(124) 	  	  	 	(3,404) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	100  	  	  	 	436  	  	
Straight-line effects of lease revenue (1)	  	 	(1,664) 	  	  	 	1,972  	  	
Net effect of amortization of above/(below) market in-place lease intangibles (1)	  	 	(1,532) 	  	  	 	(1,534) 	  	
 	  	 	 	 	  	 	 	 	
Core net operating income - cash basis	  	 	78,107  	  	  	 	88,658  	  	
 	 	 	
Net operating income from:	  	 	 	 	  	 	 	 	
Acquisitions (2)	  	 	(3,150) 	  	  	 	2  	  	
Dispositions (3)	  	 	(954) 	  	  	 	(7,327) 	  	
Industrial properties	  	 	(242) 	  	  	 	(237) 	  	
Unconsolidated joint ventures	  	 	(590) 	  	  	 	(658) 	  	
 	  	 	 	 	  	 	 	 	
Same Store NOI - Cash Basis	  	  $	73,171  	  	  	$	80,438  	  	
 	  	 	 	 	  	 	 	 	
Change period over period	  	 	-9.0%    	  	  	 	N/A    	  	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Same Store Net Operating Income
Top Seven Markets	  
  	  	 	
  	 	 	  	Three Months Ended	 	  	  	
  	 	 	  	3/31/2012	 	  	3/31/2011	 	  	  	
  	 	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	  	
 	 	 	  	 	 	 	  	 	 	 	  	 	
 	 	Washington, D.C. (4)	  	$	19,040	  	  	 	26.0  	  	  	$	18,021	  	  	 	22.4  	  	  	 	
 	 	New York (5)	  	 	12,310	  	  	 	16.8  	  	  	 	13,582	  	  	 	16.9  	  	  	 	
 	 	Chicago (6)	  	 	9,429	  	  	 	12.9  	  	  	 	12,392	  	  	 	15.4  	  	  	 	
 	 	Minneapolis	  	 	4,990	  	  	 	6.8  	  	  	 	5,040	  	  	 	6.3  	  	  	 	
 	 	Dallas	  	 	3,803	  	  	 	5.2  	  	  	 	3,816	  	  	 	4.7  	  	  	 	
 	 	Los Angeles	  	 	3,617	  	  	 	5.0  	  	  	 	3,768	  	  	 	4.7  	  	  	 	
 	 	Boston (7)	  	 	2,547	  	  	 	3.5  	  	  	 	3,871	  	  	 	4.8  	  	  	 	
 	 	Other (8)	  	 	17,435	  	  	 	23.8  	  	  	 	19,948	  	  	 	24.8  	  	  	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	
 	 	Total	  	  $	        73,171	  	  	 	100.0  	  	  	  $	        80,438	  	  	 	100.0  	  	  	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	
(1) Includes amounts attributable to wholly-owned properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Acquisitions consist of 1200 Enclave Parkway in Houston, TX, purchased on March 30, 2011; 500 West Monroe Street in Chicago, IL, acquired on March 31, 2011; The Dupree in Atlanta, GA, purchased on April 29, 2011; The Medici in Atlanta, GA, purchased on June 7, 2011; 225 and 235 Presidential Way in Woburn, MA, purchased on September 13, 2011; and 400 TownPark in Lake Mary, FL purchased on November 10, 2011.
(3) Dispositions consist of Eastpointe Corporate Center in Issaquah, WA, sold on July 1, 2011; 5000 Corporate Court in Holtsville, NY, sold on August 31, 2011; 35 West Wacker Drive in Chicago, IL, sold on December 15, 2011; and Deschutes, Rhein, Rogue, and Willamette in Beaverton, OR, sold on March 19, 2012.
(4) The increase in Washington, D.C. Same Store Net Operating Income for the three months ended March 31, 2012 as compared to the same period in 2011 was primarily related to increased rental revenue principally attributable to the commencement of the NASA swing space lease at 1201 Eye Street in Washington, D.C. as well as an increase in revenue due to a rental rate increase associated with the lease extension of the Comptroller of the Currency at One Independence Square in Washington, D.C.
(5) The decrease in the New York Same Store Net Operating Income for the three months ended March 31, 2012 as compared to the same period in 2011 was primarily related to partial lease terminations with Sanofi-aventis at 200 & 400 Bridgewater Crossing in Bridgewater, NJ in order to allow for the execution of new long-term leases to backfill the terminated spaces in advance of the March 2012 Sanofi-aventis lease expirations.
(6) The decrease in Chicago Same Store Net Operating Income for the three months ended March 31, 2012 as compared to the same period in 2011 was primarily related to the expiration of the Zurich American Insurance Company lease at Windy Point II in Schaumburg, IL as well as the expiration of the Kirkland & Ellis lease at Aon Center in Chicago, IL. The loss of the Zurich lease contributed approximately $2.7 million to the quarter's variance and the loss of the Kirkland & Ellis lease contributed approximately $2.5 million to the quarter's variance. These negative contributors are offset somewhat by the commencement of several new leases during the last year.
(7) The decrease in Boston Same Store Net Operating Income for the three months ended March 31, 2012 as compared to the same period in 2011 was primarily due to a rental abatement concession associated with a long-term lease renewal with State Street Bank at 1200 Crown Colony Drive in Quincy, MA. The renewal period for the State Street Bank lease commenced in April 2011.
(8) The decrease in Other Same Store Net Operating Income for the three months ended March 31, 2012 as compared to the same period in 2011 was primarily attributable to two factors: 1) a rental abatement concession in 2012 associated with a new lease with Chrysler Group, LLC at 1075 West Entrance Drive in Auburn Hills, MI, and 2) a rental abatement concession in 2012 associated with a new lease with Grand Canyon Education at Desert Canyon 300 in Phoenix, AZ.
 
14

Piedmont Office Realty Trust, Inc.
Same Store Net Operating Income (Accrual Basis)
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	    3/31/2012    	 	  	    3/31/2011    	 	
Net income attributable to Piedmont	  	   $	37,227  	  	  	   $	33,967  	  	
 	 	 	
Net income attributable to noncontrolling interest	  	 	4  	  	  	 	123  	  	
Interest expense	  	 	16,537  	  	  	 	17,174  	  	
Depreciation (1)	  	 	27,902  	  	  	 	27,324  	  	
Amortization (1)	  	 	12,840  	  	  	 	12,106  	  	
(Gain) / loss on sale of properties (1)	  	 	(17,830) 	  	  	 	-      	  	
(Gain) / loss on consolidation of VIE	  	 	-      	  	  	 	(1,920) 	  	
 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	76,680  	  	  	 	88,774  	  	
 	 	 	
General & administrative expenses (1)	  	 	5,318  	  	  	 	6,704  	  	
Management fee revenue	  	 	(574) 	  	  	 	(830) 	  	
Interest and other income (1)	  	 	(97) 	  	  	 	(3,460) 	  	
Lease termination income	  	 	(124) 	  	  	 	(3,404) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	100  	  	  	 	436  	  	
 	  	 	 	 	  	 	 	 	
Core net operating income - accrual basis	  	 	81,303  	  	  	 	88,220  	  	
 	 	 	
Net operating income from:	  	 	 	 	  	 	 	 	
Acquisitions (2)	  	 	(4,190) 	  	  	 	1  	  	
Dispositions (3)	  	 	(921) 	  	  	 	(8,521) 	  	
Industrial properties	  	 	(254) 	  	  	 	(256) 	  	
Unconsolidated joint ventures	  	 	(564) 	  	  	 	(616) 	  	
 	  	 	 	 	  	 	 	 	
Same Store NOI - Accrual Basis	  	   $	75,374  	  	  	   $	78,828  	  	
 	  	 	 	 	  	 	 	 	
Change period over period	  	 	-4.4%  	  	  	 	N/A    	  	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Same Store Net Operating Income
Top Seven Markets	  
  	  	 	
  	 	 	  	Three Months Ended	 	  	  	
  	 	 	  	3/31/2012	 	 	3/31/2011	 	  	  	
  	 	 	  	$	 	  	%  	 	 	$	 	  	%  	 	  	  	
 	 	 	  	 	 	 	 	 	 	 	  	 	
 	 	Washington, D.C. (4)	  	    $	20,448	  	  	 	27.1  	  	 	  $	18,076	  	  	 	23.0  	  	  	 	
 	 	New York (5)	  	 	12,593	  	  	 	16.7  	  	 	 	13,627	  	  	 	17.3  	  	  	 	
 	 	Chicago (6)	  	 	9,130	  	  	 	12.1  	  	 	 	12,090	  	  	 	15.3  	  	  	 	
 	 	Minneapolis (7)	  	 	5,333	  	  	 	7.1  	  	 	 	6,006	  	  	 	7.6  	  	  	 	
 	 	Dallas	  	 	3,924	  	  	 	5.2  	  	 	 	4,039	  	  	 	5.1  	  	  	 	
 	 	Los Angeles	  	 	3,795	  	  	 	5.1  	  	 	 	3,889	  	  	 	4.9  	  	  	 	
 	 	Boston (8)	  	 	2,871	  	  	 	3.8  	  	 	 	3,524	  	  	 	4.5  	  	  	 	
 	 	Other	  	 	17,280	  	  	 	22.9  	  	 	 	17,577	  	  	 	22.3  	  	  	 	
 	 	 	  	 	 	 	 	 	 	 	  	 	
 	 	Total	  	    $	        75,374	  	  	 	100.0  	  	 	  $	    78,828	  	  	 	100.0  	  	  	 	
 	 	 	  	 	 	 	 	 	 	 	  	 	
(1) Includes amounts attributable to wholly-owned properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Acquisitions consist of 1200 Enclave Parkway in Houston, TX, purchased on March 30, 2011; 500 West Monroe Street in Chicago, IL, acquired on March 31, 2011; The Dupree in Atlanta, GA, purchased on April 29, 2011; The Medici in Atlanta, GA, purchased on June 7, 2011; 225 and 235 Presidential Way in Woburn, MA, purchased on September 13, 2011; and 400 TownPark in Lake Mary, FL purchased on November 10, 2011.
(3) Dispositions consist of Eastpointe Corporate Center in Issaquah, WA, sold on July 1, 2011; 5000 Corporate Court in Holtsville, NY, sold on August 31, 2011; 35 West Wacker Drive in Chicago, IL, sold on December 15, 2011; and Deschutes, Rhein, Rogue, and Willamette in Beaverton, OR, sold on March 19, 2012.
(4) The increase in Washington, D.C. Same Store Net Operating Income for the three months ended March 31, 2012 as compared to the same period in 2011 was primarily attributable to three factors: 1) increased rental revenue principally attributable to the commencement of the NASA swing space lease at 1201 Eye Street in Washington, D.C., 2) an increase in revenue due to a rental rate increase associated with the lease extension of the Comptroller of the Currency at One Independence Square in Washington, D.C., and 3) increased rental revenue as a result of the commencement of the Henry M. Jackson Foundation lease at Piedmont Pointe I and II in Bethesda, MD.
(5) The decrease in the New York Same Store Net Operating Income for the three months ended March 31, 2012 as compared to the same period in 2011 was primarily related to partial lease terminations with Sanofi-aventis at 200 & 400 Bridgewater Crossing in Bridgewater, NJ in order to allow for the execution of new long-term leases to backfill the terminated spaces in advance of the March 2012 Sanofi-aventis lease expirations.
(6) The decrease in Chicago Same Store Net Operating Income for the three months ended March 31, 2012 as compared to the same period in 2011 was primarily related to the expiration of the Zurich American Insurance Company lease at Windy Point II in Schaumburg, IL as well as the expiration of the Kirkland & Ellis lease at Aon Center in Chicago, IL. The loss of the Zurich lease contributed approximately $2.5 million to the quarter’s variance and the loss of the Kirkland & Ellis lease contributed approximately $2.5 million to the quarter’s variance. These negative contributors are offset somewhat by the commencement of several new leases during the last year.
(7) The decrease in Minneapolis Same Store Net Operating Income for the three months ended March 31, 2012 as compared to the same period in 2011 was primarily related to the net loss of approximately 80,000 leased square feet associated with the expiration of the HSBC Card Services lease at Crescent Ridge II in Minnetonka, MN as well as an 80,000 square foot partial lease termination by US Bank (of which approximately 40,000 square feet has yet to be re-leased) during the second quarter of 2011 at US Bancorp Center in Minneapolis, MN.
(8) The decrease in Boston Same Store Net Operating Income for the three months ended March 31, 2012 as compared to the same period in 2011 was primarily due to a rental rate reduction associated with a long-term lease renewal with State Street Bank at 1200 Crown Colony Drive in Quincy, MA. The renewal period for the State Street Bank lease commenced in April 2011.
 
15

Piedmont Office Realty Trust, Inc.
Capitalization Analysis
Unaudited ($ and shares in thousands)

 
 	 	 	 	 	 	 	 	 	
 	  	As of
    March 31, 2012    	 	 	As of
    December 31, 2011    	 	
 
Common stock price (1)	  	 	$17.75	  	 	 	$17.04	  	
 
Total shares outstanding	  	 	172,630	  	 	 	172,630	  	
 
Equity market capitalization (1)	  	 	$3,064,178	  	 	 	$2,941,611	  	
 
Total debt - principal amount outstanding	  	 	$1,352,525	  	 	 	$1,472,525	  	
 
Total market capitalization (1)	  	 	$4,416,703	  	 	 	$4,414,136	  	
 
Total debt / Total market capitalization	  	 	30.6%	  	 	 	33.4%	  	
 
Total gross real estate assets	  	 	$4,590,544	  	 	 	$4,615,812	  	
 
Total debt / Total gross real estate assets (2)	  	 	29.5%	  	 	 	31.9%	  	
 
Total debt / Total gross assets (3)	  	 	25.7%	  	 	 	27.5%	  	

(1) Reflects common stock closing price as of the end of the reporting period.
(2) Total debt to total gross real estate assets ratio is defined as total debt divided by gross real estate assets. Gross real estate assets is defined as total real estate assets with the add back of accumulated depreciation and accumulated amortization related to real estate assets.
(3) Total debt to total gross assets ratio is defined as total debt divided by gross assets. Gross assets is defined as total assets with the add back of accumulated depreciation and accumulated amortization related to real estate assets.
 
16

Piedmont Office Realty Trust, Inc.
Debt Summary
As of March 31, 2012
Unaudited ($ in thousands)

 
 	 	 	 	 	 	 	 	 	
Floating Rate & Fixed Rate Debt	
Debt (1)	  	Principal Amount
Outstanding	 	Weighted Average
Stated Interest Rate	 	Weighted Average
Maturity	  	 

Floating Rate	  	$20,000(2)	 	0.73%	 	5.0 months	  	 	
Fixed Rate	  	1,332,525	 	4.61%	 	40.0 months	  	 	
 	  	 	
Total	  	$1,352,525	 	4.55%	 	39.5 months	  	 	

 	  	 	 	 	 	 	  	 	

Unsecured & Secured Debt	
Debt (1)	  	Principal Amount
Outstanding	 	Weighted Average
Stated Interest Rate	 	Weighted Average
Maturity	  	 

Unsecured	  	$320,000	 	2.57%(3)	 	52.6 months	  	 	
Secured	  	1,032,525	 	5.17%	 	35.4 months	  	 	
 	  	 	
Total	  	$1,352,525	 	4.55%	 	39.5 months	  	 	

 	  	 	 	 	 	 	  	 	

Debt Maturities	
Maturity Year	  	Secured Debt -
Principal Amount
Outstanding  (1)	 	 	  	Unsecured Debt -
Principal Amount
Outstanding  (1)	  	 	  	Weighted Average
Stated Interest
Rate	 	Percentage of    
Total    	 	 	

2012	  	$45,000(4)	 	 	  	$20,000	  	 	  	3.82%	 	4.8%	 	 	
2013	  	0	 	 	  	0	  	 	  	N/A	 	0.0%	 	 	
2014	  	575,000	 	 	  	0	  	 	  	4.89%	 	42.5%	 	 	
2015	  	105,000	 	 	  	0	  	 	  	5.29%	 	7.8%	 	 	
2016	  	167,525	 	 	  	300,000	  	 	  	3.71%	 	34.5%	 	 	
2017	  	140,000	 	 	  	0	  	 	  	5.76%	 	10.4%	 	 	
 	 	 	
Total	  	$1,032,525	 	 	  	$320,000	  	 	  	4.55%	 	100.0%	 	 	
 	 	 	
(1) All of Piedmont’s outstanding debt as of March 31, 2012, was interest-only debt.
(2) Amount represents the outstanding balance as of March 31, 2012, on the $500 million unsecured line of credit.
(3) The weighted average interest rate is a weighted average rate for amounts outstanding under our $500 million unsecured line of credit and our $300 million unsecured term loan. The $300 million unsecured term loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fix the interest rate on this loan at 2.69% through its maturity date of November 22, 2016, assuming no credit rating change for the Company.
(4) The $45 million fixed-rate loan secured by 4250 North Fairfax Drive was paid off subsequent to quarter end without the payment of yield maintenance charges.
 
17

Piedmont Office Realty Trust, Inc.
Debt Detail
Unaudited ($ in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	
Facility	 	Property	  	Rate(1)	  	Maturity	 	 	Principal Amount
Outstanding as of
March 31, 2012	 	

Secured	 	 	  	 	  	 	 	 	 	 	 	 	
$45.0 Million Fixed-Rate Loan (2)	 	4250 North Fairfax Drive	  	5.20%	  	 	6/1/2012	  	 	 	$45,000	  	
$200.0 Million Fixed-Rate Loan	 	Aon Center	  	4.87%	  	 	5/1/2014	  	 	 	200,000	  	
$25.0 Million Fixed-Rate Loan	 	Aon Center	  	5.70%	  	 	5/1/2014	  	 	 	25,000	  	
$350.0 Million Secured Pooled Facility	 	Nine Property Collateralized Pool (3)	  	4.84%	  	 	6/7/2014	  	 	 	350,000	  	
$105.0 Million Fixed-Rate Loan	 	US Bancorp Center	  	5.29%	  	 	5/11/2015	  	 	 	105,000	  	
$125.0 Million Fixed-Rate Loan	 	Four Property Collateralized Pool (4)	  	5.50%	  	 	4/1/2016	  	 	 	125,000	  	
$42.5 Million Fixed-Rate Loan	 	Las Colinas Corporate Center I & II	  	5.70%	  	 	10/11/2016	  	 	 	42,525	  	
$140.0 Million WDC Fixed-Rate Loans	 	1201 & 1225 Eye Street	  	5.76%	  	 	11/1/2017	  	 	 	140,000	  	

Subtotal / Weighted Average (5)	 	 	  	5.17%	  	 	 	 	 	 	$1,032,525	  	
 	 	 	 	 	
Unsecured	 	 	  	 	  	 	 	 	 	 	 	 	
$500 Million Unsecured Facility (6)	 	N/A	  	   0.73%(7)	  	 	8/30/2012	  	 	 	$20,000	  	
$300 Million Unsecured Term Loan	 	N/A	  	   2.69%(8)	  	 	11/22/2016	  	 	 	300,000	  	

Subtotal / Weighted Average (5)	 	 	  	2.57%	  	 	 	 	 	 	$320,000	  	

Total Debt - Principal Amount Outstanding / Weighted Average Stated Rate (5)	  	4.55%	  	 	 	 	 	 	$1,352,525	  	
 	 	
(1) All of Piedmont’s outstanding debt as of March 31, 2012, was interest-only debt.
(2) The $45 million fixed-rate loan secured by 4250 North Fairfax Drive is open for prepayment thirty days prior to maturity. Piedmont repaid the loan subsequent to quarter end on May 1, 2012.
(3) The nine property collateralized pool includes 1200 Crown Colony Drive, Braker Pointe III, 2 Gatehall Drive, One and Two Independence Square, 2120 West End Avenue, 200 and 400 Bridgewater Crossing, and Fairway Center II.
(4) The four property collateralized pool includes 1430 Enclave Parkway, Windy Point I and II, and 1055 East Colorado Boulevard.
(5) Weighted average is based on the total balance outstanding and interest rate at March 31, 2012.
(6) All of Piedmont’s outstanding debt as of March 31, 2012, was term debt with the exception of the $500 million unsecured line of credit. Piedmont has begun the process to replace this maturing facility.
(7) The interest rate on the $500 million unsecured line of credit is equal to the weighted average interest rate on all outstanding draws as of March 31, 2012. Piedmont may select from multiple interest rate options with each draw under this facility, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread (0.475% as of March 31, 2012) over the selected rate based on Piedmont’s current credit rating.
(8) The $300 million unsecured term loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fix the interest rate on this loan at 2.69% through its maturity date of November 22, 2016, assuming no credit rating change for the Company.
 
18

Piedmont Office Realty Trust, Inc.
Debt Analysis
As of March 31, 2012
Unaudited

 
 	 	 	 	 	 	 	 	 	
Debt Covenant Compliance (1)	  	        Required         	 	  	        Actual         	 	
 
Maximum Leverage Ratio	  	 	0.60	  	  	 	0.32	  	
 
Minimum Fixed Charge Coverage Ratio (2)	  	 	1.50	  	  	 	4.65	  	
 
Maximum Secured Indebtedness Ratio	  	 	0.40	  	  	 	0.24	  	
 
Minimum Unencumbered Leverage Ratio	  	 	1.60	  	  	 	6.36	  	
 
Minimum Unencumbered Interest Coverage Ratio(3)	  	 	1.75	  	  	 	21.65	  	
 
Maximum Certain Permitted Investments Ratio(4)	  	 	0.35	  	  	 	0.01	  	
(1) Debt covenant compliance calculations relate to specific calculations detailed in our line of credit agreement.
 
(2) Defined as EBITDA for the trailing four quarters (including the company's share of EBITDA from unconsolidated interests), less one-time or non-recurring gains or losses, less a $0.15 per square foot capital reserve, and excluding the impact of straight line rent leveling adjustments and amortization of intangibles divided by the company's share of fixed charges, as more particularly described in the credit agreements. This definition of fixed charge coverage ratio as prescribed by our line of credit agreement is different from the fixed charge coverage ratio definition employed elsewhere within this report.
 
(3) Defined as net operating income for the trailing four quarters for unencumbered assets (including the company's share of net operating income from unconsolidated interests that are unencumbered) less a $0.15 per square foot capital reserve divided by the company's share of interest expense associated with unsecured financings only, as more particularly described in the credit agreements.
 
(4) Permitted investments are defined as unconsolidated interests, debt investments, unimproved land, and development projects. Investments in permitted investments shall not exceed 35% of total asset value.	  

   	

 	 	 	 	 	
Other Debt Coverage Ratios	  	Three months ended
March 31, 2012	  	Year ended
December 31, 2011        	
 
Net debt to core EBITDA	  	4.2 x	  	3.9 x	
 
Fixed charge coverage ratio (5)	  	4.6 x	  	4.8 x	
 
Interest coverage ratio (6)	  	4.6 x	  	4.8 x	
 
(5) Fixed charge coverage is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. We had no capitalized interest, principal amortization or preferred dividends during the periods ended March 31, 2012 and December 31, 2011.
 
(6) Interest coverage ratio is calculated as Core EBITDA divided by the sum of interest expense and capitalized interest. We had no capitalized interest during the periods ended March 31, 2012 and December 31, 2011.	
 
19

Piedmont Office Realty Trust, Inc.
Tenant Diversification (1)
As of March 31, 2012
(in thousands except for number of properties)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  	 	Credit Rating (2)	 	Number of
Properties	 	Lease
Expiration(s)  (3)	 	Annualized Lease
Revenue	 	Percentage of
Annualized Lease
Revenue (%)	 	Leased Square
Footage	 	Percentage of
Leased Square
Footage (%)	
U.S. Government	 	AA+ / Aaa	 	9	 	(4)	 	$73,148	 	13.6	 	1,596	 	9.2	
BP(5)	 	A / A2	 	1	 	2013	 	31,749	 	5.9	 	776	 	4.5	
US Bancorp	 	A / Aa3	 	3	 	2014 / 2023(6)	 	27,675	 	5.1	 	973	 	5.6	
State of New York	 	AA / Aa2	 	1	 	2019	 	19,405	 	3.6	 	481	 	2.8	
Independence Blue Cross	 	No rating available	 	1	 	2023	 	14,267	 	2.7	 	761	 	4.4	
Nestle	 	AA / Aa1	 	1	 	2015	 	13,798	 	2.6	 	392	 	2.2	
GE	 	AA+ / Aa3	 	2	 	2027	 	12,911	 	2.4	 	393	 	2.3	
Shaw	 	BBB- / Ba1	 	1	 	2018	 	9,836	 	1.8	 	313	 	1.8	
City of New York	 	AA / Aa2	 	1	 	2020	 	9,403	 	1.7	 	313	 	1.8	
Lockheed Martin	 	A- / Baa1	 	3	 	2014	 	9,320	 	1.7	 	283	 	1.6	
DDB Needham	 	BBB+ / Baa1	 	1	 	2018	 	8,997	 	1.7	 	246	 	1.4	
KPMG	 	No rating available	 	2	 	2027	 	8,946	 	1.7	 	277	 	1.6	
Gallagher	 	No rating available	 	1	 	2018	 	8,013	 	1.5	 	307	 	1.8	
Gemini	 	A+ / Aa3	 	1	 	2021	 	7,304	 	1.4	 	205	 	1.2	
Caterpillar Financial	 	A / A2	 	1	 	2022	 	7,125	 	1.3	 	312	 	1.8	
Raytheon	 	A- / A3	 	2	 	2019	 	6,555	 	1.2	 	440	 	2.5	
Harvard University	 	AAA / Aaa	 	2	 	2017	 	6,515	 	1.2	 	105	 	0.6	
KeyBank	 	A- / A3	 	2	 	2016	 	6,383	 	1.2	 	210	 	1.2	
Edelman	 	No rating available	 	1	 	2024	 	6,094	 	1.1	 	178	 	1.0	
Harcourt	 	BBB+	 	1	 	2016	 	6,038	 	1.1	 	195	 	1.1	
Jones Lang LaSalle	 	BBB- / Baa2	 	1	 	2017	 	5,777	 	1.1	 	165	 	0.9	
Qwest Communications	 	BB / Baa3	 	1	 	2014	 	5,697	 	1.1	 	161	 	0.9	
First Data Corporation	 	B / B3	 	1	 	2020	 	5,691	 	1.1	 	195	 	1.1	
Archon Group	 	A- / A1	 	2	 	2018	 	5,382	 	1.0	 	235	 	1.4	
Other	 	 	 	 	 	Various	 	221,656	 	41.2	 	7,891	 	45.3	
Total	 	 	 	 	 	 	 	$537,685	 	100.0	 	17,403	 	100.0	

(1) This schedule presents all tenants contributing 1.0% or more to Annualized Lease Revenue.
(2) Credit rating may reflect the credit rating of the parent or a guarantor. When available, both the Standard & Poor’s credit rating and the Moody’s credit rating are provided.
(3) Represents the expiration year of the majority of the square footage leased by the tenant.
(4) There are several leases with several different agencies of the U.S. Government with expiration years ranging from 2012 to 2027.
(5) Majority of the space is subleased to Aon Corporation.
(6) US Bank’s lease at One & Two Meridian Crossings, representing approximately 337,000 square feet and $8.9 million of Annualized Lease Revenue, expires in 2023. US Bancorp’s lease at US Bancorp Center for approximately 635,000 square feet, representing $18.7 million of Annualized Lease Revenue, expires in 2014.
 
20

Piedmont Office Realty Trust, Inc.
Tenant Credit Rating & Lease Distribution Information
As of March 31, 2012

 
 	 	 	 	 	 	 	 	 	
    Tenant Credit Rating (1)	  	Annualized Lease
Revenue ($’s in
thousands)	 	  	Percentage of
Annualized Lease
Revenue (%)	  	  	
    AAA / Aaa	  	 	$9,953	  	  	1.8	  	 	
    AA / Aa	  	 	179,618	  	  	33.4	  	 	
    A / A	  	 	105,174	  	  	19.6	  	 	
    BBB / Baa	  	 	74,355	  	  	13.8	  	 	
    BB / Ba	  	 	9,698	  	  	1.8	  	 	
    B / B	  	 	19,178	  	  	3.6	  	 	
    Below	  	 	1,248	  	  	0.2	  	 	
    Not rated (2)	  	 	138,461	  	  	25.8	  	 	
 	  	 	 	 	  	 	  	 	
    Total	  	 	$537,685	  	  	100.0	  	 	

Lease Distribution
As of March 31, 2012

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Number of Leases	  	Percentage of
Leases (%)	  	Annualized
Lease Revenue
(in thousands)	 	  	Percentage of
Annualized Lease
Revenue (%)	  	Leased Square
Footage (in
thousands)	  	Percentage of
    Leased Square    
Footage (%)	

2,500 or Less	  	180	  	34.5	  	 	$16,404	  	  	3.1	  	144	  	0.8	
2,501 - 10,000	  	136	  	26.1	  	 	24,817	  	  	4.6	  	735	  	4.2	
10,001 - 20,000	  	66	  	12.6	  	 	28,740	  	  	5.4	  	967	  	5.6	
20,001 - 40,000	  	57	  	10.9	  	 	51,113	  	  	9.5	  	1,651	  	9.5	
40,001 - 100,000	  	32	  	6.1	  	 	57,750	  	  	10.7	  	1,891	  	10.9	
Greater than 100,000	  	51	  	9.8	  	 	358,861	  	  	66.7	  	12,015	  	69.0	
 	
Total	  	522	  	100.0	  	 	$537,685	  	  	100.0	  	17,403	  	100.0	

 
(1) Credit rating may reflect the credit rating of the parent or a guarantor. Where differences exist between the Standard & Poor’s credit rating for a tenant and the Moody’s credit rating for a tenant, the higher credit rating is selected for this analysis.
(2) The classification of a tenant as “not rated” does not indicate that the tenant is of poor credit quality, but can indicate that the tenant or the tenant's debt, if any, has not been rated. Included in this category are such tenants as Independence Blue Cross, McKinsey & Company and KPMG.
 
21

Piedmont Office Realty Trust, Inc.
Leased Percentage Information
(in thousands)
 
Impact of Strategic Transactions on Leased Percentage
The Company’s stated long-term growth strategy includes the recycling of capital from certain stabilized or non-core assets into office properties located in focused concentration and opportunistic markets. Some of the recently acquired properties are value-add properties which are defined as low-occupancy properties acquired at attractive bases with earnings growth and capital appreciation potential achievable through leasing up such assets to a stabilized occupancy. Because the value-add properties have large vacancies, they negatively affect Piedmont’s overall leased percentage. In order to identify the effect they have on Piedmont’s overall leased percentage, the following information is being provided. The analysis below: 1) removes the impact of the value-add properties from Piedmont’s overall office portfolio total under the heading “Stabilized Portfolio Analysis”; and 2) provides a year-over-year comparison of leased percentage on the same subset of properties under the heading “Same Store Analysis”.

 	  	Three Months Ended March 31, 2012	 	 	 	  	Three Months Ended March 31, 2011	 	
 	  	 	 	 	 	 	  	 	 	 	
 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased  (1)	 	 	 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased  (1)	 	
 	  	 	 	 	 	 	  	 	 	 	
As of December 31, 20xx	  	 	18,124	  	 	 	20,942	  	 	 	86.5%	  	 	 	  	 	18,214	  	 	 	20,408	  	 	 	89.2%	  	
New leases	  	 	621	  	 	 	 	 	 	 	 	 	 	 	  	 	796	  	 	 	 	 	 	 	 	 	
Expired leases	  	 	(1,010	) 	 	 	 	 	 	 	 	 	 	 	  	 	(904	) 	 	 	 	 	 	 	 	 	
Other	  	 	(7	) 	 	 	-    	  	 	 	 	 	 	 	  	 	(1	) 	 	 	(4	) 	 	 	 	 	
 	  	 	 	 	 	 	  	 	 	 	
Subtotal	  	 	17,728	  	 	 	20,942	  	 	 	84.7%	  	 	 	  	 	18,105	  	 	 	20,404	  	 	 	88.7%	  	
 	 	 	 	 	 	 	 	
Acquisitions during period	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	668	  	 	 	1,112	  	 	 	 	 	
Dispositions during period	  	 	(325	) 	 	 	(325	) 	 	 	 	 	 	 	  	 	-    	  	 	 	-    	  	 	 	 	 	
 	 	 	 	 	 	 	 	
As of March 31, 20xx (2) (3)	  	 	17,403	  	 	 	20,617	  	 	 	84.4%	  	 	 	  	 	18,773	  	 	 	21,516	  	 	 	87.3%	  	

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
Same Store Analysis	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Less acquisitions/dispositions after March 31, 2011 (4) (5)	  	 	(659	) 	 	 	(906	) 	 	 	72.7%	  	 	 	  	 	(1,685	) 	 	 	(1,824	) 	 	 	92.4%	  	
 	 	 	 	 	 	 	 	
Same Store Total (6)	  	 	16,744	  	 	 	19,711	  	 	 	84.9%	  	 	 	  	 	17,088	  	 	 	19,692	  	 	 	86.8%	  	

Stabilized Portfolio Analysis	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Less value-add properties (5)	  	 	(752	) 	 	 	(1,582	) 	 	 	47.5%	  	 	 	  	 	(668	) 	 	 	(1,254	) 	 	 	53.3%	  	

Stabilized Total	  	 	16,651	  	 	 	19,035	  	 	 	87.5%	  	 	 	  	 	18,105	  	 	 	20,262	  	 	 	89.4%	  	

 
(1) Calculated as leased square footage as of period end with the addition of square footage associated with uncommenced leases for spaces vacant as of period end, divided by total rentable square footage as of period end, expressed as a percentage.
(2) The square footage associated with leases with end of period expiration dates is included in the end of the period leased square footage.
(3) End of period leased square footage for 2012 includes short-term space leased on behalf of NASA in accordance with requirements stipulated under its lease to allow it to restructure its space at Two Independence Square in Washington, D.C. As of March 31, 2012, the total short-term space amounts to approximately 63,000 square feet and it will be occupied until an estimated date of September 30, 2013.
(4) Dispositions completed during the previous twelve months are deducted from the previous period data and acquisitions completed during the previous twelve months are deducted from the current period data.
(5) For additional information on acquisitions/dispositions completed during the last year and value-add properties, please refer to pages 32 and 33, respectively.
(6) Excluding executed but not commenced leases for currently vacant spaces, comprising approximately 684,000 square feet for the current period and 379,000 square feet for the prior period, Piedmont's same store commenced leased percentage was 81.5% and 84.9%, respectively.
 
22

Piedmont Office Realty Trust, Inc.
Rental Rate Roll Up / Roll Down Analysis (1)
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended March 31, 2012	 	

 	  	Square Feet	 	  	% of Total Signed
During Period	 	 	% of Rentable Square
Footage	 	 	% Change Cash
Rents  (2)	 	 	% Change Accrual
Rents  (3) (4)	 	

Leases executed for spaces vacant less than one year	  	 	355	  	  	 	81	% 	 	 	1.7	% 	 	 	(4.5	%) 	 	 	0.2	% 	
 	 	 	 	 	 	
Leases executed for spaces excluded from analysis (5)	  	 	82	  	  	 	19	% 	 	 	 	 	 	 	 	 	 	 	 	 	

(1) The population analyzed consists of office leases executed during the period (retail leases, as well as leases associated with storage spaces, management offices, industrial properties and unconsolidated joint venture assets, were excluded from this analysis). Spaces that had been vacant for greater than one year were excluded from this analysis.
(2) For the purposes of this analysis, the cash rents last in effect for the previous leases were compared to the initial cash rents of the new leases in order to calculate the percentage change.
(3) For the purposes of this analysis, the accrual basis rents for the previous leases were compared to the accrual basis rents of the new leases in order to calculate the percentage change. For newly signed leases which have variations in accrual basis rents, whether because of known future expansions, contractions, lease expense recovery structure changes, or other similar reasons, the weighted average of such accrual basis rents is used for the purposes of this analysis.
(4) For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease, unless the Company is notified otherwise by the tenant. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.
(5) Represents leases signed at our consolidated office assets that do not qualify for inclusion in the analysis primarily because the spaces for which the new leases were signed had been vacant for greater than one year. Leases signed with Piedmont entities are excluded from the analysis.
 
23

Piedmont Office Realty Trust, Inc.
Lease Expiration Schedule
As of March 31, 2012
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	OFFICE PORTFOLIO	 	GOVERNMENTAL ENTITIES	
 	 	 	 	 	 	 	 	
 	  	Annualized Lease
Revenue  (1)	  	Percentage of
Annualized Lease
Revenue (%)	  	Rentable Square
Footage	  	Percentage of
Rentable Square
Footage (%)	 	Annualized Lease
Revenue  (1)	  	Percentage of
Annualized Lease
Revenue (%)	  	Percentage of
Current Year
Total Annualized
Lease Revenue
Expiring (%)	

Vacant	  	$0	  	0.0	  	3,215	  	15.6	 	$0	  	0.0	  	N/A	
2012(2)	  	27,783	  	5.2	  	920	  	4.5	 	4,802	  	0.9	  	17.3	
2013	  	67,315	  	12.5	  	1,597	  	7.7	 	21,631	  	4.0	  	32.1	
2014	  	55,472	  	10.3	  	1,617	  	7.8	 	3,556	  	0.7	  	6.4	
2015	  	43,364	  	8.1	  	1,543	  	7.5	 	32	  	0.0	  	0.1	
2016	  	30,705	  	5.7	  	1,075	  	5.2	 	1,507	  	0.3	  	4.9	
2017	  	34,487	  	6.4	  	1,097	  	5.3	 	799	  	0.1	  	2.3	
2018	  	50,658	  	9.4	  	1,693	  	8.2	 	8,733	  	1.6	  	17.2	
2019	  	46,269	  	8.6	  	1,759	  	8.5	 	19,405	  	3.6	  	41.9	
2020	  	24,776	  	4.6	  	965	  	4.7	 	9,403	  	1.7	  	38.0	
2021	  	14,323	  	2.7	  	500	  	2.4	 	0	  	0.0	  	0.0	
2022	  	23,601	  	4.4	  	856	  	4.2	 	0	  	0.0	  	0.0	
2023	  	31,848	  	5.9	  	1,398	  	6.8	 	0	  	0.0	  	0.0	
2024	  	22,715	  	4.2	  	679	  	3.3	 	0	  	0.0	  	0.0	
2025	  	3,637	  	0.7	  	164	  	0.8	 	0	  	0.0	  	0.0	
Thereafter	  	60,732	  	11.3	  	1,539	  	7.5	 	32,438	  	6.1	  	53.4	

Total / Weighted Average	  	$537,685	  	100.0	  	20,617	  	100.0	 	$102,306	  	19.0	  	 	

(1) Annualized rental income associated with newly executed leases for currently occupied space is incorporated herein only at the expiration date for the current lease. Annualized rental income associated with such new leases is removed from the expiry year of the current lease and added to the expiry year of the new lease. These adjustments effectively incorporate known roll ups and roll downs into the expiration schedule.
(2) Leases and other revenue-producing agreements on a month-to-month basis, aggregating 15,261 square feet and Annualized Lease Revenue of $500,063, are assigned a lease expiration date of a year and a day beyond the period end date. Includes leases with an expiration date of March 31, 2012 aggregating 32,300 square feet and Annualized Lease Revenue of $1,519,357.
 
24

Piedmont Office Realty Trust, Inc.
Lease Expirations by Quarter
As of March 31, 2012
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Q2 2012 (1)	  	Q3 2012	  	Q4 2012	  	Q1 2013	
 	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	

Atlanta	  	0	  	$0	  	5	  	$103	  	62	  	$1,218	  	0	  	$0	
Austin	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Boston	  	0	  	0	  	0	  	0	  	4	  	189	  	0	  	31	
Central & South Florida	  	1	  	1	  	0	  	0	  	4	  	113	  	0	  	0	
Chicago	  	17	  	501	  	79	  	2,508	  	15	  	480	  	47	  	1,681	
Cleveland	  	0	  	0	  	0	  	0	  	102	  	1,580	  	0	  	0	
Dallas	  	9	  	248	  	0	  	4	  	97	  	2,388	  	0	  	0	
Denver	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Detroit	  	21	  	592	  	0	  	0	  	0	  	0	  	0	  	0	
Houston	  	0	  	0	  	0	  	0	  	11	  	345	  	0	  	0	
Los Angeles	  	4	  	170	  	0	  	1	  	22	  	865	  	2	  	50	
Minneapolis	  	0	  	0	  	3	  	112	  	14	  	404	  	16	  	516	
Nashville	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
New York	  	7	  	178	  	2	  	70	  	150	  	3,319	  	11	  	306	
Philadelphia	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Phoenix	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Portland	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Washington, D.C.	  	32	  	1,746	  	230	  	10,481	  	28	  	1,507	  	9	  	365	

Total / Weighted Average (3)	  	91	  	$3,436	  	319	  	$13,279	  	509	  	$12,408	  	85	  	$2,949	

 
(1) Includes leases with an expiration date of March 31, 2012 aggregating 32,300 square feet and Expiring Lease Revenue of $1,424,452. No such adjustments are made to other periods presented.
(2) Expiring lease revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(3) Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on the previous page as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in place rental rates.
 
25

Piedmont Office Realty Trust, Inc.
Lease Expirations by Year
As of March 31, 2012
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	12/31/2012 (1)	  	12/31/2013	  	12/31/2014	  	12/31/2015	  	12/31/2016	
 	  	 	  	 	  	 	  	 	  	 	
 	  	Expiring
Square
Footage	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	
 	  	 	  	 	  	 	  	 	  	 	
Atlanta	  	67	  	$1,321	  	19	  	$592	  	28	  	$591	  	29	  	$504	  	18	  	$193	
Austin	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	195	  	6,042	
Boston	  	4	  	189	  	0	  	31	  	27	  	1,884	  	135	  	2,791	  	3	  	185	
Central & South Florida	  	4	  	114	  	22	  	568	  	18	  	449	  	17	  	384	  	115	  	2,842	
Chicago	  	111	  	3,490	  	640	  	25,437	  	30	  	3,584	  	198	  	5,458	  	82	  	2,376	
Cleveland	  	102	  	1,580	  	27	  	586	  	0	  	0	  	0	  	0	  	13	  	294	
Dallas	  	107	  	2,639	  	13	  	338	  	41	  	1,004	  	284	  	6,357	  	7	  	150	
Denver	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	156	  	2,934	
Detroit	  	21	  	592	  	86	  	750	  	6	  	124	  	132	  	3,881	  	31	  	671	
Houston	  	11	  	345	  	1	  	1	  	0	  	0	  	0	  	0	  	0	  	17	
Los Angeles	  	27	  	1,036	  	74	  	2,590	  	5	  	1,550	  	425	  	14,799	  	88	  	2,711	
Minneapolis	  	17	  	515	  	54	  	1,789	  	807	  	22,858	  	100	  	3,539	  	33	  	1,039	
Nashville	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
New York	  	159	  	3,567	  	32	  	1,459	  	102	  	4,262	  	66	  	2,390	  	280	  	8,987	
Philadelphia	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Phoenix	  	0	  	0	  	0	  	0	  	0	  	0	  	132	  	1,947	  	0	  	0	
Portland	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Washington, D.C.	  	290	  	13,736	  	629	  	30,618	  	553	  	19,282	  	25	  	1,100	  	54	  	2,377	

Total / Weighted Average (3)	  	920	  	$29,124	  	1,597	  	$64,759	  	1,617	  	$55,588	  	1,543	  	$43,150	  	1,075	  	$30,818	

 
(1) Includes leases with an expiration date of March 31, 2012 aggregating 32,300 square feet and Expiring Lease Revenue of $1,424,452. No such adjustments are made to other periods presented.
(2) Expiring lease revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(3) Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on page 24 as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in place rental rates.
 
26

Piedmont Office Realty Trust, Inc.
Capital Expenditures & Commitments
For the quarter ended March 31, 2012
Unaudited ($ in thousands)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	
 	 	 	  	For the Three Months Ended	
 	 	 	  	 	 	 	 	 	
 	 	 	  	            3/31/2012            	 	  	12/31/2011            	 	  	9/30/2011            	 	  	6/30/2011            	 	 	3/31/2011            	 	 	 	
 	 	 	  	 	 	 	 	 	
 	 	Non-incremental	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Bldg / construction / dev	  	 	$1,426	  	  	 	$3,650	  	  	 	$1,063	  	  	 	$1,315	  	 	 	$1,484	  	 	 	
 	 	Tenant improvements	  	 	5,367	  	  	 	8,463	  	  	 	4,748	  	  	 	7,367	  	 	 	7,567	  	 	 	
 	 	Leasing costs	  	 	1,273	  	  	 	3,279	  	  	 	8,718	  	  	 	4,667	  	 	 	8,080	  	 	 	
 	 	 	  	 	 	 	 	 	
 	 	Total non-incremental	  	 	8,066	  	  	 	15,392	  	  	 	14,529	  	  	 	13,349	  	 	 	17,131	  	 	 	
 	 	Incremental	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Bldg / construction / dev	  	 	2,241	  	  	 	2,040	  	  	 	1,646	  	  	 	983	  	 	 	1,173	  	 	 	
 	 	Tenant improvements	  	 	5,938	  	  	 	10,862	  	  	 	7,154	  	  	 	4,770	  	 	 	3,749	  	 	 	
 	 	Leasing costs	  	 	1,925	  	  	 	12,791	  	  	 	1,464	  	  	 	1,372	  	 	 	1,467	  	 	 	
 	 	 	  	 	 	 	 	 	
 	 	Total incremental	  	 	10,104	  	  	 	25,693	  	  	 	10,264	  	  	 	7,125	  	 	 	6,389	  	 	 	
 	 	 	  	 	 	 	 	 	
 	 	Total capital expenditures	  	 	$18,170	  	  	 	$41,085	  	  	 	$24,793	  	  	 	$20,474	  	 	 	$23,520	  	 	 	

 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	

 	 	Tenant improvement commitments (1)	  	 	 	 	 	 	 	
 	 	Tenant improvement commitments outstanding as of December 31, 2011	  	 	 	$143,814	  	 	 	
 	 	New tenant improvement commitments related to leases executed during period	  	 	 	5,254	  	 	 	
 	 	Tenant improvement expenditures	  	  	 	(11,305	) 	 	 	 	 	 	 	
 	 	Less: Tenant improvement expenditures fulfilled through accrued liabilities already presented on Piedmont’s balance sheet, expired commitments or other adjustments	   	  	 	(483	) 	 	 	 	 	 	 	
 	 	Tenant improvement commitments fulfilled, expired or other adjustments	  	 	 	(11,788	) 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Total as of March 31, 2012	  	 	 	$137,280	  	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Tenant improvement commitments - Incremental capital when fulfilled	  	 	 	$48,071	  	 	 	
 	 	Tenant improvement commitments - Non-incremental capital when fulfilled	  	 	 	89,209	  	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Total as of March 31, 2012	  	 	            $	137,280	  	 	 	

 
 
NOTE: The information presented on this page is for all consolidated assets, inclusive of our industrial properties. During the third quarter of 2011, Piedmont revised its definitions of incremental and non-incremental capital expenditures in order to conform with the more broadly accepted definitions for such terms by other office REITs. Our revised definitions of these measures can be found on pages 35 and 36. Capital expenditures have been restated for all prior periods in order to provide a consistent basis for comparison.
(1) Commitments are unexpired contractual tenant improvement obligations for leases executed in current and prior periods that have not yet been incurred and have not otherwise been presented on Piedmont's financial statements. The four largest commitments total approximately $75.8 million, or 55% of total outstanding commitments.
 
27

Piedmont Office Realty Trust, Inc.
Contractual Tenant Improvements and Leasing Commissions

 
 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	  	  	For the Year Ended	
 	 	 	 	For the Three Months Ended          
March 31, 2012          	  	2011	  	2010	  	2009    	
Renewal Leases	 	 	  	 	  	 	  	 	
 	 	Number of leases	 	6	  	48	  	37	  	34    	
 	 	Square feet	 	274,518	  	2,280,329	  	1,241,481	  	1,568,895    	
 	 	Tenant improvements per square foot (1)	 	$0.00	  	$33.29	  	$14.40	  	$12.01    	
 	 	Leasing commissions per square foot	 	$1.79	  	$9.97	  	$8.40	  	$5.51    	
 	 	Total per square foot	 	$1.79	  	$43.26	  	$22.80	  	$17.52    	
 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	$0.00	  	$3.93	  	$1.74	  	$1.44    	
 	 	Leasing commissions per square foot per year of lease term	 	$0.53	  	$1.18	  	$1.02	  	$0.66    	
 	 	Total per square foot per year of lease term (2)	 	$0.53	  	$5.11	  	$2.76	  	$2.10    	
 	 	 	 	 	
  New Leases	 	 	  	 	  	 	  	 	
 	 	Number of leases	 	16	  	76	  	56	  	28    	
 	 	Square feet	 	162,166	  	1,588,271	  	866,212	  	700,295    	
 	 	Tenant improvements per square foot (1)	 	$20.53	  	$41.21	  	$32.65	  	$45.04    	
 	 	Leasing commissions per square foot	 	$20.25	  	$15.38	  	$11.28	  	$17.12    	
 	 	Total per square foot	 	$40.78	  	$56.59	  	$43.93	  	$62.16    	
 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	$2.51	  	$4.19	  	$4.16	  	$4.05    	
 	 	Leasing commissions per square foot per year of lease term	 	$2.47	  	$1.57	  	$1.44	  	$1.54    	
 	 	Total per square foot per year of lease term	 	$4.98	  	$5.76	  	$5.60	  	$5.59    	
 	 	 	 	 	
  Total	 	 	  	 	  	 	  	 	
 	 	Number of leases	 	22	  	124	  	93	  	62    	
 	 	Square feet	 	436,684	  	3,868,600	  	2,107,693	  	2,269,190    	
 	 	Tenant improvements per square foot (1)	 	$7.62	  	$36.54	  	$21.90	  	$22.21    	
 	 	Leasing commissions per square foot	 	$8.65	  	$12.19	  	$9.59	  	$9.09    	
 	 	Total per square foot	 	$16.27	  	$48.73	  	$31.49	  	$31.30    	
 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	$1.48	  	$4.05	  	$2.70	  	$2.42    	
 	 	Leasing commissions per square foot per year of lease term	 	$1.67	  	$1.35	  	$1.18	  	$0.99    	
 	 	Total per square foot per year of lease term	 	$3.15	  	$5.40	  	$3.88	  	$3.41    	
NOTE: This information is presented for our consolidated office assets only. Short-term leases (leases for a term of less than one year) are excluded from this information.
(1) For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease, unless the Company is notified otherwise by the tenant. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.
(2)  During 2011, we completed two large, 15-year lease renewals with significant capital commitments: NASA at Two Independence Square in Washington, D.C. and GE at 500 West Monroe Street in Chicago, IL. If the costs associated with these renewals were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for renewal leases in 2011 would be $2.80.
 
28

Piedmont Office Realty Trust, Inc.
Geographic Diversification
As of March 31, 2012

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Location	  	Number of
Properties	  	  	  	Annualized Lease
Revenue ($’s in
thousands)	  	  	  	Percentage of
Annualized Lease
Revenue (%)	  	  	  	Rentable Square
Footage (in
Thousands)	  	  	  	Percentage of
Rentable Square
Footage (%)	  	  	  	Leased Square
Footage (in
thousands)	  	  	  	Percent Leased  
(%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Washington, D.C.	  	14	  	 	  	$121,965	  	 	  	22.7	  	 	  	3,055	  	 	  	14.8	  	 	  	2,803	  	 	  	91.8  	
Chicago	  	6	  	 	  	119,173	  	 	  	22.2	  	 	  	4,772	  	 	  	23.1	  	 	  	3,439	  	 	  	72.1  	
New York	  	7	  	 	  	75,891	  	 	  	14.1	  	 	  	2,659	  	 	  	12.9	  	 	  	2,335	  	 	  	87.8  	
Minneapolis	  	4	  	 	  	43,293	  	 	  	8.1	  	 	  	1,612	  	 	  	7.8	  	 	  	1,473	  	 	  	91.4  	
Los Angeles	  	5	  	 	  	29,128	  	 	  	5.4	  	 	  	1,144	  	 	  	5.6	  	 	  	937	  	 	  	81.9  	
Boston	  	6	  	 	  	26,619	  	 	  	5.0	  	 	  	1,023	  	 	  	5.0	  	 	  	1,012	  	 	  	98.9  	
Dallas	  	7	  	 	  	24,831	  	 	  	4.6	  	 	  	1,276	  	 	  	6.2	  	 	  	1,139	  	 	  	89.3  	
Detroit	  	4	  	 	  	17,611	  	 	  	3.3	  	 	  	930	  	 	  	4.5	  	 	  	794	  	 	  	85.4  	
Atlanta	  	6	  	 	  	15,275	  	 	  	2.8	  	 	  	1,042	  	 	  	5.1	  	 	  	639	  	 	  	61.3  	
Philadelphia	  	1	  	 	  	14,267	  	 	  	2.7	  	 	  	761	  	 	  	3.7	  	 	  	761	  	 	  	100.0  	
Houston	  	2	  	 	  	13,544	  	 	  	2.5	  	 	  	463	  	 	  	2.2	  	 	  	431	  	 	  	93.1  	
Phoenix	  	4	  	 	  	9,074	  	 	  	1.7	  	 	  	554	  	 	  	2.7	  	 	  	467	  	 	  	84.3  	
Central & South Florida	  	4	  	 	  	7,727	  	 	  	1.4	  	 	  	476	  	 	  	2.3	  	 	  	332	  	 	  	69.7  	
Nashville	  	1	  	 	  	7,125	  	 	  	1.3	  	 	  	312	  	 	  	1.5	  	 	  	312	  	 	  	100.0  	
Austin	  	1	  	 	  	6,042	  	 	  	1.1	  	 	  	195	  	 	  	0.9	  	 	  	195	  	 	  	100.0  	
Cleveland	  	2	  	 	  	3,185	  	 	  	0.6	  	 	  	187	  	 	  	0.9	  	 	  	178	  	 	  	95.2  	
Denver	  	1	  	 	  	2,935	  	 	  	0.5	  	 	  	156	  	 	  	0.8	  	 	  	156	  	 	  	100.0  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total / Weighted Average	  	75	  	 	  	$537,685	  	 	  	100.0	  	 	  	20,617	  	 	  	100.0	  	 	  	17,403	  	 	  	84.4  	

 
29

Piedmont Office Realty Trust, Inc.
Geographic Diversification by Location Type
As of March 31, 2012

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	  	CBD / URBAN INFILL	  	 	  	SUBURBAN	  	 	  	TOTAL	
Location	  	State	  	Number
of
Properties	  	Percentage
of
Annualized
Lease
Revenue
(%)	  	Rentable
Square
Footage (in
Thousands)	  	Percentage
of
Rentable
Square
Footage
(%)	  	 	  	 	  	Number
of
Properties	  	Percentage
of
Annualized
Lease
Revenue
(%)	  	Rentable
Square
Footage (in
Thousands)	  	Percentage
of
Rentable
Square
Footage
(%)	  	 	  	Number
of
Properties	  	Percentage
of
Annualized
Lease
Revenue
(%)	  	Rentable
Square
Footage (in
Thousands)	  	Percentage
of
Rentable
Square
Footage
(%)	
 	
Washington, D.C.	  	DC, VA, MD
	  	9	  	20.2	  	2,574	  	12.5	  	 	  	 	  	5	  	2.5	  	481	  	2.3	  	 	  	14	  	22.7	  	3,055	  	14.8	
Chicago	  	IL	  	2	  	18.8	  	3,647	  	17.7	  	 	  	 	  	4	  	3.4	  	1,125	  	5.4	  	 	  	6	  	22.2	  	4,772	  	23.1	
New York	  	NY, NJ	  	1	  	7.3	  	1,027	  	5.0	  	 	  	 	  	6	  	6.8	  	1,632	  	7.9	  	 	  	7	  	14.1	  	2,659	  	12.9	
Minneapolis	  	MN	  	1	  	5.2	  	927	  	4.5	  	 	  	 	  	3	  	2.9	  	685	  	3.3	  	 	  	4	  	8.1	  	1,612	  	7.8	
Los Angeles	  	CA	  	3	  	4.4	  	865	  	4.2	  	 	  	 	  	2	  	1.0	  	279	  	1.4	  	 	  	5	  	5.4	  	1,144	  	5.6	
Boston	  	MA	  	2	  	2.2	  	173	  	0.8	  	 	  	 	  	4	  	2.8	  	850	  	4.2	  	 	  	6	  	5.0	  	1,023	  	5.0	
Dallas	  	TX	  	0	  	0.0	  	0	  	0.0	  	 	  	 	  	7	  	4.6	  	1,276	  	6.2	  	 	  	7	  	4.6	  	1,276	  	6.2	
Detroit	  	MI	  	1	  	1.9	  	493	  	2.4	  	 	  	 	  	3	  	1.4	  	437	  	2.1	  	 	  	4	  	3.3	  	930	  	4.5	
Atlanta	  	GA	  	2	  	1.7	  	558	  	2.7	  	 	  	 	  	4	  	1.1	  	484	  	2.4	  	 	  	6	  	2.8	  	1,042	  	5.1	
Philadelphia	  	PA	  	1	  	2.7	  	761	  	3.7	  	 	  	 	  	0	  	0.0	  	0	  	0.0	  	 	  	1	  	2.7	  	761	  	3.7	
Houston	  	TX	  	0	  	0.0	  	0	  	0.0	  	 	  	 	  	2	  	2.5	  	463	  	2.2	  	 	  	2	  	2.5	  	463	  	2.2	
Phoenix	  	AZ	  	0	  	0.0	  	0	  	0.0	  	 	  	 	  	4	  	1.7	  	554	  	2.7	  	 	  	4	  	1.7	  	554	  	2.7	
Central & South Florida	  	FL	  	0	  	0.0	  	0	  	0.0	  	 	  	 	  	4	  	1.4	  	476	  	2.3	  	 	  	4	  	1.4	  	476	  	2.3	
Nashville	  	TN	  	1	  	1.3	  	312	  	1.5	  	 	  	 	  	0	  	0.0	  	0	  	0.0	  	 	  	1	  	1.3	  	312	  	1.5	
Austin	  	TX	  	0	  	0.0	  	0	  	0.0	  	 	  	 	  	1	  	1.1	  	195	  	0.9	  	 	  	1	  	1.1	  	195	  	0.9	
Cleveland	  	OH	  	0	  	0.0	  	0	  	0.0	  	 	  	 	  	2	  	0.6	  	187	  	0.9	  	 	  	2	  	0.6	  	187	  	0.9	
Denver	  	CO	  	0	  	0.0	  	0	  	0.0	  	 	  	 	  	1	  	0.5	  	156	  	0.8	  	 	  	1	  	0.5	  	156	  	0.8	
Total / Weighted Average	  	 	  	23	  	65.7	  	11,337	  	55.0	  	 	  	 	  	52	  	34.3	  	9,280	  	45.0	  	 	  	75	  	100.0	  	20,617	  	100.0	

30

Piedmont Office Realty Trust, Inc.
Industry Diversification
As of March 31, 2012

 	 	 	 	 	 	 	 	 	 	 	 	 	
Industry Diversification	 	  Number of  
Tenants	 	  Percentage of  
Total Tenants
(%)	 	  Annualized Lease  
Revenue ($’s in
thousands)	 	Percentage of
  Annualized Lease  
Revenue (%)	 	  Leased Square  
Footage (in
thousands)	 	Percentage of
  Leased Square  
Footage (%)	

Governmental Entity	 	7	 	1.6	 	$102,306	 	19.0	 	2,400	 	13.8	
Depository Institutions	 	13	 	3.0	 	50,702	 	9.4	 	1,732	 	9.9	
Business Services	 	63	 	14.5	 	40,096	 	7.5	 	1,405	 	8.1	
Petroleum Refining & Related Industries	 	1	 	0.2	 	31,749	 	5.9	 	776	 	4.4	
Engineering, Accounting, Research, Management & Related Services	 	30	 	6.9	 	30,953	 	5.8	 	941	 	5.4	
Nondepository Credit Institutions	 	13	 	3.0	 	30,903	 	5.7	 	1,096	 	6.3	
Insurance Carriers	 	22	 	5.1	 	30,380	 	5.6	 	1,366	 	7.8	
Communications	 	34	 	7.8	 	18,177	 	3.4	 	610	 	3.5	
Security & Commodity Brokers, Dealers, Exchanges & Services	 	25	 	5.7	 	16,983	 	3.2	 	608	 	3.5	
Educational Services	 	10	 	2.3	 	15,561	 	2.9	 	434	 	2.5	
Food & Kindred Products	 	6	 	1.4	 	14,755	 	2.7	 	428	 	2.5	
Transportation Equipment	 	4	 	0.9	 	13,827	 	2.6	 	518	 	3.0	
Electronic & Other Electrical Equipment & Components, Except Computer	 	9	 	2.1	 	13,314	 	2.5	 	660	 	3.8	
Fabricated Metal Products, Except Machinery & Transportation Equipment	 	4	 	0.9	 	12,322	 	2.3	 	419	 	2.4	
Insurance Agents, Brokers & Services	 	7	 	1.6	 	11,504	 	2.1	 	430	 	2.5	
Other	 	187	 	43.0	 	104,153	 	19.4	 	3,580	 	20.6	
 	
Total	 	435	 	100.0	 	$537,685	 	100.0	 	17,403	 	100.0	

 
31

Piedmont Office Realty Trust, Inc.
Property Investment Activity
As of March 31, 2012

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions Over Prior Eighteen Months	 	 	 	 	 	 	 	 	
 	
Property Name	 	Location	 	  Acquisition  
Date	 	Percent
  Ownership  
(%)	 	  Year Built  	 	Purchase
  Price ($’s in  
thousands)	 	Rentable
Square
  Footage (in  
thousands)	 	Percent
Leased at
  Acquisition  
(%)	
 	
Meridian Crossings	 	Richfield, MN	 	10/1/2010	 	100	 	1997-1998	 	$65,611	 	384	 	96	
1200 Enclave Parkway	 	Houston, TX	 	3/30/2011	 	100	 	1999	 	18,500	 	150	 	18	
500 West Monroe Street (1)	 	Chicago, IL	 	3/31/2011	 	100	 	1991	 	227,500	 	962	 	49	
The Dupree	 	Atlanta, GA	 	4/29/2011	 	100	 	1997	 	20,450	 	138	 	83	
The Medici	 	Atlanta, GA	 	6/7/2011	 	100	 	2008	 	13,210	 	152	 	22	
225 and 235 Presidential Way	 	Woburn, MA	 	9/13/2011	 	100	 	2000-2001	 	85,300	 	440	 	100	
400 TownPark	 	Lake Mary, FL	 	11/10/2011	 	100	 	2008	 	23,865	 	176	 	19	

 	 	 	 	 	 	 	 	 	 	$454,436	 	2,402	 	62	

Dispositions Over Prior Eighteen Months	 	 	 	 	 	 	 	 	
 	
Property Name	 	Location	 	  Disposition  
Date	 	Percent
  Ownership  
(%)	 	  Year Built  	 	  Sale Price ($’s  
in thousands)	 	Rentable
Square
  Footage (in  
thousands)	 	Percent
Leased at
  Disposition  
(%)	
 	
111 Sylvan Avenue	 	Englewood Cliffs, NJ	 	12/8/2010	 	100	 	1953-1967	 	$55,000	 	410	 	100	
14400 Hertz Quail Springs Parkway (2)	 	Oklahoma City, OK	 	10/15/2010	 	4	 	1997	 	5,300	 	57	 	100	
360 Interlocken Boulevard (2)	 	Broomfield, CO	 	6/2/2011	 	4	 	1996	 	9,150	 	52	 	100	
Eastpointe Corporate Center	 	Issaquah, WA	 	7/1/2011	 	100	 	2001	 	32,000	 	156	 	19	
47300 Kato Road (2)	 	Fremont, CA	 	8/25/2011	 	78	 	1982	 	3,825	 	58	 	0	
5000 Corporate Court	 	Holtsville, NY	 	8/31/2011	 	100	 	2000	 	39,250	 	264	 	82	
35 West Wacker Drive (2)	 	Chicago, IL	 	12/15/2011	 	96.5	 	1989	 	401,000	 	1,118	 	100	
Willamette	 	Beaverton, OR	 	3/19/2012	 	100	 	1988	 	7,050	 	73	 	100	
Rogue	 	Beaverton, OR	 	3/19/2012	 	100	 	1998	 	13,550	 	105	 	100	
Deschutes	 	Beaverton, OR	 	3/19/2012	 	100	 	1989	 	7,150	 	73	 	50	
Rhein	 	Beaverton, OR	 	3/19/2012	 	100	 	1990	 	10,250	 	74	 	100	
Portland Land Parcels	 	Beaverton, OR	 	3/19/2012	 	100	 	N/A	 	5,942	 	N/A	 	N/A	

 	 	 	 	 	 	 	 	 	 	$589,467	 	2,440	 	89	
 	 	 	 	 	 	 	 	 	 	 	
(1) Investment in this property was converted from a structured finance investment to an owned real estate asset through a UCC foreclosure of an equity ownership interest on March 31, 2011. The purchase price presented equates to the book basis for the real estate assets comprising the property. Percent leased at acquisition reflects the space leased by Marsh USA as vacant, as the tenant had already announced plans to vacate prior to Piedmont’s assumption of ownership of the asset.
(2) Sale price and rentable square footage are gross figures and have not been adjusted for Piedmont’s ownership percentage.
 
32

Piedmont Office Realty Trust, Inc.
Value-Add Activity
As of March 31, 2012

Presented below are properties that were acquired employing a value-add strategy. Once a property acquired under a value-add strategy reaches 80% leased, it is deemed stabilized for the purposes of supplemental reporting and will be removed from the value-add classification.

Value-Add Properties	  	 	  	 	  	 	  	 	  	 	
 	
Property Name	  	Location	  	Acquisition
Date	  	Percent
Ownership
(%)	  	Year Built	  	Purchase
Price ($’s in
thousands)	  	Rentable
Square
Footage (in
thousands)	  	Current
Percent
Leased (%)	  	Percent
Leased
at
Acquisition
(%)	
 	
Suwanee Gateway One	  	Suwanee, GA	  	9/28/2010	  	100	  	2008	  	$7,875	  	142	  	0	  	0	
1200 Enclave Parkway	  	Houston, TX	  	3/30/2011	  	100	  	1999	  	18,500	  	150	  	79	  	18	
500 West Monroe Street (1)	  	Chicago, IL	  	3/31/2011	  	100	  	1991	  	227,500	  	962	  	55	  	49	
The Medici	  	Atlanta, GA	  	6/7/2011	  	100	  	2008	  	13,210	  	152	  	33	  	22	
400 TownPark	  	Lake Mary, FL	  	11/10/2011	  	100	  	2008	  	23,865	  	176	  	31	  	19	

 	  	 	  	 	  	 	  	 	  	$290,950	  	1,582	  	48	  	36	
 	  	 	  	 	  	 	  	 	  	 	
(1) Property was acquired through the foreclosure of an equity ownership interest. Percent leased at acquisition reflects the space leased by Marsh USA as vacant, as the tenant had already announced plans to vacate prior to Piedmont's assumption of ownership of the asset.
 
33

Piedmont Office Realty Trust, Inc.
Other Investments
As of March 31, 2012

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Industrial Properties	  	  Location  	  	Percent
  Ownership  
(%)	  	  Year Built  	  	 	  	Real Estate
Net Book
  Value ($’s in  
thousands)	  	  Rentable Square  
Footage (in
thousands)	  	Percent
  Leased (%)  	
 	
112 Hidden Lake Circle	  	Duncan, SC	  	100	  	1987	  	 	  	$9,524	  	313.4	  	100	
110 Hidden Lake Circle	  	Duncan, SC	  	100	  	1987	  	 	  	13,928	  	474.0	  	100	
 	  	 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	 	  	$23,452	  	787.4	  	100	

Unconsolidated Joint Venture Properties	  	Location	  	Percent
Ownership
(%)	  	Year Built	  	Piedmont
Share of Real
Estate Net
Book Value
($’s in
thousands)	  	Real Estate
Net Book
Value ($’s in
thousands)	  	Rentable Square
Footage (in
thousands)	  	Percent
Leased (%)	
 	
20/20 Building	  	Leawood, KS	  	57	  	1992	  	$2,553	  	$4,499	  	68.3	  	91	
4685 Investment Drive	  	Troy, MI	  	55	  	2000	  	5,067	  	9,211	  	77.1	  	100	
5301 Maryland Way	  	Brentwood, TN	  	55	  	1989	  	10,735	  	19,515	  	201.2	  	100	
8560 Upland Drive	  	Parker, CO	  	72	  	2001	  	7,434	  	10,341	  	148.2	  	57	
Two Park Center	  	Hoffman Estates, IL	  	72	  	1999	  	11,142	  	15,498	  	193.7	  	39	
 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	$36,931	  	$59,064	  	688.5	  	72	

Land Parcels	  	Location	  	 	  	 	  	 	  	 	  	Acres	  	 	
 	
Enclave Parkway	  	Houston, TX	  	 	  	 	  	 	  	 	  	4.5	  	 	
Durham Avenue	  	South Plainfield, NJ	  	 	  	 	  	 	  	 	  	8.9	  	 	
State Highway 161	  	Irving, TX	  	 	  	 	  	 	  	 	  	4.5	  	 	
 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	 	  	 	  	17.9	  	 	

34

Piedmont Office Realty Trust, Inc.
Supplemental Definitions
 
Included in this section are management’s statements regarding certain non-GAAP financial measures provided in this supplemental report and reasons why management believes that these measures provide useful information to investors about the Company’s financial condition and results of operations. Reconciliations of these non-GAAP measures are included within pages 38-40.
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and acquisition-related costs and adding back non-cash items including non-real estate depreciation, straight lined rents and fair value lease revenue, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. Although AFFO may not be comparable to that of other REITs, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity.
Annualized Lease Revenue (“ALR”): ALR is calculated by multiplying (i) rental payments (defined as base rent plus operating expense reimbursements, if payable by the tenant on a monthly basis under the terms of a lease that have been executed, but excluding a) rental abatements and b) rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents or operating expense reimbursements are collected on an annual, semi-annual, or quarterly basis, such amounts are multiplied by a factor of 1, 2, or 4, respectively, to calculate the annualized figure. For leases that have been executed but not commenced relating to un-leased space, ALR is calculated by multiplying (i) the monthly base rental payment (excluding abatements) plus any operating expense reimbursements for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes our industrial properties and unconsolidated joint venture interests.
Core EBITDA: Core EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property, or other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe Core EBITDA is a reasonable measure of our liquidity. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate Core EBITDA differently and our calculation should not be compared to that of other REITs.
Core Funds From Operations (“Core FFO”): We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjusting for certain non-recurring items such as gains or losses on the early extinguishment of debt, acquisition-related costs and other extraordinary items. Such items create significant earnings volatility. We believe Core FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs' equivalent to Core FFO.
Core Net Operating Income (“Core NOI”): Core NOI is defined as real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income and expense associated with lease terminations and income associated with property management performed by Piedmont for other organizations. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Core NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is an appropriate measure of our ability to incur and service debt. EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs.
Funds From Operations (“FFO”): FFO is calculated in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property and impairment losses, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. These adjustments can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO may provide valuable comparisons of operating performance between periods and with other REITs. FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income. We believe that FFO is a beneficial indicator of the performance of an equity REIT. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to that of such other REITs.
Incremental Capital Expenditures: Incremental Capital Expenditures are defined as capital expenditures of a non-recurring nature that incrementally enhance the underlying assets' income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives (“Leasing Costs”) incurred to lease space that was vacant at acquisition, Leasing Costs for spaces vacant for greater than one year, Leasing Costs for spaces at newly acquired properties for which in-place leases expire shortly after acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are included in this measure.

 
35

Piedmont Office Realty Trust, Inc.
Supplemental Definitions

 
 	
NOI from Unconsolidated Joint Ventures: NOI from Unconsolidated Joint Ventures is defined as Core NOI attributable to our interests in eight properties owned through unconsolidated partnerships. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. NOI from Unconsolidated Joint Ventures is a non-GAAP measure and therefore may not be comparable to similarly defined data provided by other REITs.
 
Non-Incremental Capital Expenditures: Non-Incremental Capital Expenditures are defined as capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets' income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure, in addition to other capital expenditures that qualify as Incremental Capital Expenditures, as defined above.
 
Same Store Net Operating Income (“Same Store NOI”): Same Store NOI is calculated as the Core NOI attributable to the properties owned or placed in service during the entire span of the current and prior year reporting periods. Same Store NOI excludes amounts attributable to industrial properties and unconsolidated joint venture assets. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties' operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.
 
Same Store Properties: Same Store Properties is defined as properties owned or placed in service during the entire span of the current and prior year reporting periods. Same Store Properties excludes industrial properties and unconsolidated joint venture assets. We believe Same Store Properties is an important measure of comparison of our stabilized portfolio performance.	
 
36

Piedmont Office Realty Trust, Inc.
Research Coverage

 	 	 	 	 	 	 	
Paul E. Adornato, CFA	  	John W. Guinee, III	  	Brendan Maiorana	  	 	
BMO Capital Markets	  	Stifel, Nicolaus & Company	  	Wells Fargo	  	 	
3 Times Square, 26th Floor	  	One South Street	  	7 St. Paul Street	  	 	
New York, NY 10036	  	16th Floor	  	MAC R1230-011	  	 	
Phone: (212) 885-4170	  	Baltimore, MD 21202	  	Baltimore, MD 21202	  	 	
 	  	Phone: (443) 224-1307	  	Phone: (443) 263-6516	  	 	
 	 	 	 	
Paul Morgan	  	Anthony Paolone, CFA	  	David B. Rodgers, CFA	  	 	
Morgan Stanley	  	JP Morgan	  	RBC Capital Markets	  	 	
555 California Street, 21st Floor	  	277 Park Avenue	  	Arbor Court	  	 	
San Francisco, CA 94104	  	New York, NY 10172	  	30575 Bainbridge Road, Suite 250	
Phone: (415) 576-2627	  	Phone: (212) 622-6682	  	Solon, OH 44139	  	 	
 	  	 	  	Phone: (440) 715-2647	  	 	
 	 	 	 	
Michael Knott, CFA	  	Stephen C. Swett	  	 	  	 	
Green Street Advisors	  	Morgan Keegan & Co.	  	 	  	 	
660 Newport Center Drive, Suite 800	  	535 Madison Avenue	  	 	  	 	
Newport Beach, CA 92660	  	10th Floor	  	 	  	 	
Phone: (949) 640-8780	  	New York, NY 10022	  	 	  	 	
 	  	Phone: (212) 508-7585	  	 	  	 	
 
37

Piedmont Office Realty Trust, Inc.
FFO, Core FFO, & AFFO Reconciliations
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	    3/31/2012    	 	 	    12/31/2011    	 	 	    9/30/2011    	 	 	    6/30/2011    	 	 	    3/31/2011    	 	
Net income attributable to Piedmont	 	$	37,227 	  	 	$	119,020 	  	 	$	51,026 	  	 	$	21,027 	  	 	$	33,967 	  	
 	 	 	 	 	 	
Depreciation	 	 	27,809 	  	 	 	27,287 	  	 	 	28,102 	  	 	 	27,879 	  	 	 	27,154 	  	
Amortization	 	 	12,840 	  	 	 	15,531 	  	 	 	16,616 	  	 	 	15,878 	  	 	 	12,106 	  	
(Gain) / loss on sale of properties	 	 	(17,830)	  	 	 	(95,901)	  	 	 	(26,826)	  	 	 	(45)	  	 	 	-    	  	
(Gain) / loss on consolidation of VIE	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	388 	  	 	 	(1,920)	  	

Funds from operations	 	 	60,046 	  	 	 	65,937 	  	 	 	68,918 	  	 	 	65,127 	  	 	 	71,307 	  	
 	 	 	 	 	 	
Acquisition costs	 	 	(3)	  	 	 	372 	  	 	 	285 	  	 	 	716 	  	 	 	(26)	  	
(Gain) / loss on extinguishment of debt	 	 	-    	  	 	 	(1,039)	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	

Core funds from operations	 	 	60,043 	  	 	 	65,270 	  	 	 	69,203 	  	 	 	65,843 	  	 	 	71,281 	  	
 	 	 	 	 	 	
Depreciation of non real estate assets	 	 	93 	  	 	 	77 	  	 	 	84 	  	 	 	168 	  	 	 	170 	  	
Stock-based and other non-cash compensation expense	 	 	334 	  	 	 	1,730 	  	 	 	1,111 	  	 	 	896 	  	 	 	968 	  	
Deferred financing cost amortization	 	 	803 	  	 	 	649 	  	 	 	879 	  	 	 	1,060 	  	 	 	607 	  	
Amortization of fair market adjustments on notes payable	 	 	-    	  	 	 	-    	  	 	 	471 	  	 	 	942 	  	 	 	-    	  	
Straight-line effects of lease revenue	 	 	(1,565)	  	 	 	(5,019)	  	 	 	(4,129)	  	 	 	(2,596)	  	 	 	2,237	  	
Amortization of lease related intangibles	 	 	(1,532)	  	 	 	(2,215)	  	 	 	(1,817)	  	 	 	(1,670)	  	 	 	(1,363)	  	
Income from amortization of discount on purchase of mezzanine loans	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	(484)	  	
Acquisition costs	 	 	3 	  	 	 	(372)	  	 	 	(285)	  	 	 	(716)	  	 	 	26 	  	
 	 	 	 	 	 	
Non-incremental capital expenditures	 	 	(8,066)	  	 	 	(15,392)	  	 	 	(14,529)	  	 	 	(13,349)	  	 	 	(17,131)	  	

Adjusted funds from operations	 	$	50,113 	  	 	$	44,728 	  	 	$	50,988 	  	 	$	50,578 	  	 	$	56,311 	  	

38

Piedmont Office Realty Trust, Inc.
Same Store Net Operating Income (Cash Basis)
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	    3/31/2012    	 	 	    12/31/2011    	 	 	    9/30/2011    	 	 	    6/30/2011    	 	 	    3/31/2011    	 	
 	 	 	 	 	 	
Net income attributable to Piedmont	 	$	37,227  	  	 	$	119,020  	  	 	$	51,026  	  	 	$	21,027  	  	 	$	33,967  	  	
 	 	 	 	 	 	
Net income attributable to noncontrolling interest	 	 	4  	  	 	 	91  	  	 	 	135  	  	 	 	121  	  	 	 	123  	  	
Interest expense	 	 	16,537  	  	 	 	17,457  	  	 	 	17,804  	  	 	 	19,313  	  	 	 	17,174  	  	
Loss on extinguishment of debt	 	 	-      	  	 	 	(1,039) 	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	
Depreciation	 	 	27,902  	  	 	 	27,364  	  	 	 	28,186  	  	 	 	28,047  	  	 	 	27,324  	  	
Amortization	 	 	12,840  	  	 	 	15,531  	  	 	 	16,616  	  	 	 	15,878  	  	 	 	12,106  	  	
(Gain) / loss on sale of properties	 	 	(17,830) 	  	 	 	(95,901) 	  	 	 	(26,826) 	  	 	 	(45) 	  	 	 	-      	  	
(Gain) / loss on consolidation of VIE	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	388  	  	 	 	(1,920) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	 	 	76,680  	  	 	 	82,523  	  	 	 	86,941  	  	 	 	84,729  	  	 	 	88,774  	  	
 	 	 	 	 	 	
General & administrative expenses	 	 	5,318  	  	 	 	6,241  	  	 	 	4,747  	  	 	 	7,392  	  	 	 	6,704  	  	
Management fee revenue	 	 	(574) 	  	 	 	(281) 	  	 	 	(110) 	  	 	 	(363) 	  	 	 	(830) 	  	
Interest and other income	 	 	(97) 	  	 	 	357  	  	 	 	74  	  	 	 	253  	  	 	 	(3,460) 	  	
Lease termination income	 	 	(124) 	  	 	 	(319) 	  	 	 	33  	  	 	 	(1,347) 	  	 	 	(3,404) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	 	 	100  	  	 	 	185  	  	 	 	260  	  	 	 	43  	  	 	 	436  	  	
Straight-line effects of lease revenue	 	 	(1,664) 	  	 	 	(5,180) 	  	 	 	(4,296) 	  	 	 	(2,639) 	  	 	 	1,972  	  	
Net effect of amortization of above/(below) market in-place lease intangibles	 	 	(1,532) 	  	 	 	(2,239) 	  	 	 	(1,911) 	  	 	 	(1,670) 	  	 	 	(1,534) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income - cash basis	 	 	78,107  	  	 	 	81,287  	  	 	 	85,738  	  	 	 	86,398  	  	 	 	88,658  	  	
 	 	 	 	 	 	
Net operating income from:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	 	 	(3,150) 	  	 	 	(4,489) 	  	 	 	(3,393) 	  	 	 	(3,446) 	  	 	 	2  	  	
Dispositions	 	 	(954) 	  	 	 	(5,709) 	  	 	 	(7,152) 	  	 	 	(7,388) 	  	 	 	(7,327) 	  	
Industrial properties	 	 	(242) 	  	 	 	(242) 	  	 	 	(254) 	  	 	 	(242) 	  	 	 	(237) 	  	
Unconsolidated joint ventures	 	 	(590) 	  	 	 	(1,013) 	  	 	 	(818) 	  	 	 	(696) 	  	 	 	(658) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI - Cash Basis	 	$	73,171  	  	 	$	69,834  	  	 	$	74,121  	  	 	$	74,626  	  	 	$	80,438  	  	

39

Piedmont Office Realty Trust, Inc.
Unconsolidated Joint Venture NOI Reconciliation
Pro-rata (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/2012	 	  	12/31/2011	 	  	9/30/2011	 	 	6/30/2011	 	 	3/31/2011	 	
 	 	 	 	 	 	
Equity in Income of Unconsolidated JVs	  	  $	170	  	  	  $	587	  	  	  $	485	  	 	  $	338	  	 	  $	209	  	
 	 	 	 	 	 	
Interest expense	  	 	-  	  	  	 	-  	  	  	 	-  	  	 	 	-  	  	 	 	-  	  	
 	 	 	 	 	 	
Depreciation	  	 	296	  	  	 	293	  	  	 	296	  	 	 	300	  	 	 	302	  	
 	 	 	 	 	 	
Amortization	  	 	41	  	  	 	33	  	  	 	33	  	 	 	33	  	 	 	30	  	
 	 	 	 	 	 	
(Gain) / loss on sale of properties	  	 	-  	  	  	 	-  	  	  	 	(71	) 	 	 	(45	) 	 	 	-  	  	

Core EBITDA	  	 	507	  	  	 	913	  	  	 	743	  	 	 	626	  	 	 	541	  	
 	 	 	 	 	 	
General & administrative expenses	  	 	57	  	  	 	49	  	  	 	29	  	 	 	27	  	 	 	75	  	
 	 	 	 	 	 	
Interest and other income	  	 	-  	  	  	 	-  	  	  	 	(1	) 	 	 	-  	  	 	 	-  	  	

Core net operating income (accrual basis)	  	 	564	  	  	 	962	  	  	 	771	  	 	 	653	  	 	 	616	  	
 	 	 	 	 	 	
Straight-line effects of lease revenue	  	 	26	  	  	 	51	  	  	 	47	  	 	 	43	  	 	 	42	  	
 	 	 	 	 	 	
Net effect of amortization of above/(below) market in-place lease intangibles	  	 	-  	  	  	 	-  	  	  	 	-  	  	 	 	-  	  	 	 	-  	  	

Core net operating income (cash basis)	  	  $	590	  	  	  $	1,013	  	  	  $	818	  	 	  $	696	  	 	  $	658	  	

40

Piedmont Office Realty Trust, Inc.
Discontinued Operations
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	 	 	 	
 	  	3/31/2012	 	 	12/31/2011	 	 	9/30/2011	 	 	6/30/2011	 	 	3/31/2011	 	

Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	  $	          797	  	 	$	          7,142	  	 	$	          8,419	  	 	$	          9,526	  	 	$	          9,508	  	
Tenant reimbursements	  	 	231	  	 	 	4,344	  	 	 	3,730	  	 	 	5,492	  	 	 	5,596	  	
Property management fee revenue	  	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	
Other rental income	  	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	
 	  	 	 	 	
Total revenues	  	 	1,028	  	 	 	11,486	  	 	 	12,149	  	 	 	15,018	  	 	 	15,104	  	
 	 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	106	  	 	 	4,641	  	 	 	3,619	  	 	 	6,366	  	 	 	6,335	  	
Depreciation	  	 	153	  	 	 	192	  	 	 	1,736	  	 	 	1,961	  	 	 	1,985	  	
Amortization	  	 	8	  	 	 	39	  	 	 	1,693	  	 	 	1,738	  	 	 	1,738	  	
General and administrative	  	 	3	  	 	 	(12	) 	 	 	41	  	 	 	22	  	 	 	16	  	
 	  	 	 	 	
Total operating expenses	  	 	270	  	 	 	4,860	  	 	 	7,089	  	 	 	10,087	  	 	 	10,074	  	
 	 	 	 	 	 	
Interest expense	  	 	-    	  	 	 	(1,278	) 	 	 	(1,568	) 	 	 	(1,551	) 	 	 	(1,534	) 	
Interest and other income (expense)	  	 	-    	  	 	 	-    	  	 	 	16	  	 	 	(15	) 	 	 	-    	  	
Net income attributable to noncontrolling interest	  	 	-    	  	 	 	(87	) 	 	 	(131	) 	 	 	(117	) 	 	 	(119	) 	
 	  	 	 	 	
Total other income (expense)	  	 	-    	  	 	 	(1,365	) 	 	 	(1,683	) 	 	 	(1,683	) 	 	 	(1,653	) 	
 	 	 	 	 	 	
  Operating income, excluding impairment loss and gain on sale	  	  $	758	  	 	$	5,261	  	 	$	3,377	  	 	$	3,248	  	 	$	3,377	  	
 	 	 	 	 	 	
Gain / (loss) on sale of properties	  	 	17,830	  	 	 	95,901	  	 	 	26,756	  	 	 	-    	  	 	 	-    	  	

Income from discontinued operations	  	  $	18,588	  	 	$	101,162	  	 	$	30,133	  	 	$	3,248	  	 	$	3,377	  	

41

Piedmont Office Realty Trust, Inc.
Property Detail
As of March 31, 2012

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Building Name	  	City	  	State	  	Percent
Ownership	 	 	Year
Built	 	  	Rentable
Square
Footage
Owned (in
thousands)	 	  	Leased
Percentage	 	 	Commenced
Leased
Percentage	 	
 	 	 	 	 	 	 	 	
Atlanta	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
11695 Johns Creek Parkway	  	Johns Creek	  	GA	  	 	100.0	% 	 	 	2001	  	  	 	101	  	  	 	91.1	% 	 	 	91.1	% 	
3750 Brookside Parkway	  	Alpharetta	  	GA	  	 	100.0	% 	 	 	2001	  	  	 	103	  	  	 	91.3	% 	 	 	91.3	% 	
Glenridge Highlands Two	  	Atlanta	  	GA	  	 	100.0	% 	 	 	2000	  	  	 	406	  	  	 	71.2	% 	 	 	71.2	% 	
Suwanee Gateway One	  	Suwanee	  	GA	  	 	100.0	% 	 	 	2008	  	  	 	142	  	  	 	0.0	% 	 	 	0.0	% 	
The Dupree	  	Atlanta	  	GA	  	 	100.0	% 	 	 	1997	  	  	 	138	  	  	 	82.6	% 	 	 	82.6	% 	
The Medici	  	Atlanta	  	GA	  	 	100.0	% 	 	 	2008	  	  	 	152	  	  	 	32.9	% 	 	 	32.9	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	1,042	  	  	 	61.3	% 	 	 	61.3	% 	
 	 	 	 	 	 	 	 	
Austin	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Braker Pointe III	  	Austin	  	TX	  	 	100.0	% 	 	 	2001	  	  	 	195	  	  	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	195	  	  	 	100.0	% 	 	 	100.0	% 	
 	 	 	 	 	 	 	 	
Boston	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
1200 Crown Colony Drive	  	Quincy	  	MA	  	 	100.0	% 	 	 	1990	  	  	 	235	  	  	 	100.0	% 	 	 	100.0	% 	
90 Central Street	  	Boxborough	  	MA	  	 	100.0	% 	 	 	2001	  	  	 	175	  	  	 	96.6	% 	 	 	96.6	% 	
1414 Massachusetts Avenue	  	Cambridge	  	MA	  	 	100.0	% 	 	 	1873	  	  	 	78	  	  	 	100.0	% 	 	 	100.0	% 	
One Brattle Square	  	Cambridge	  	MA	  	 	100.0	% 	 	 	1991	  	  	 	95	  	  	 	94.7	% 	 	 	94.7	% 	
225 Presidential Way	  	Woburn	  	MA	  	 	100.0	% 	 	 	2001	  	  	 	202	  	  	 	100.0	% 	 	 	100.0	% 	
235 Presidential Way	  	Woburn	  	MA	  	 	100.0	% 	 	 	2000	  	  	 	238	  	  	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	1,023	  	  	 	98.9	% 	 	 	98.9	% 	
 	 	 	 	 	 	 	 	
Chicago	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Windy Point I	  	Schaumburg	  	IL	  	 	100.0	% 	 	 	1999	  	  	 	187	  	  	 	96.8	% 	 	 	96.8	% 	
Windy Point II	  	Schaumburg	  	IL	  	 	100.0	% 	 	 	2001	  	  	 	300	  	  	 	15.7	% 	 	 	15.7	% 	
Aon Center	  	Chicago	  	IL	  	 	100.0	% 	 	 	1972	  	  	 	2,685	  	  	 	81.8	% 	 	 	69.9	% 	
Two Pierce Place	  	Itasca	  	IL	  	 	100.0	% 	 	 	1991	  	  	 	486	  	  	 	76.3	% 	 	 	76.3	% 	
2300 Cabot Drive	  	Lisle	  	IL	  	 	100.0	% 	 	 	1998	  	  	 	152	  	  	 	76.3	% 	 	 	76.3	% 	
500 West Monroe Street	  	Chicago	  	IL	  	 	100.0	% 	 	 	1991	  	  	 	962	  	  	 	55.0	% 	 	 	48.9	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	4,772	  	  	 	72.1	% 	 	 	64.1	% 	
 	 	 	 	 	 	 	 	
Cleveland	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Eastpoint I	  	Mayfield Heights	  	OH	  	 	100.0	% 	 	 	2000	  	  	 	102	  	  	 	100.0	% 	 	 	100.0	% 	
Eastpoint II	  	Mayfield Heights	  	OH	  	 	100.0	% 	 	 	2000	  	  	 	85	  	  	 	89.4	% 	 	 	89.4	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	187	  	  	 	95.2	% 	 	 	95.2	% 	
 	 	 	 	 	 	 	 	
Dallas	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
3900 Dallas Parkway	  	Plano	  	TX	  	 	100.0	% 	 	 	1999	  	  	 	120	  	  	 	100.0	% 	 	 	100.0	% 	
5601 Headquarters Drive	  	Plano	  	TX	  	 	100.0	% 	 	 	2001	  	  	 	166	  	  	 	100.0	% 	 	 	100.0	% 	
6031 Connection Drive	  	Irving	  	TX	  	 	100.0	% 	 	 	1999	  	  	 	229	  	  	 	88.6	% 	 	 	86.9	% 	
6021 Connection Drive	  	Irving	  	TX	  	 	100.0	% 	 	 	2000	  	  	 	223	  	  	 	100.0	% 	 	 	100.0	% 	
6011 Connection Drive	  	Irving	  	TX	  	 	100.0	% 	 	 	1999	  	  	 	152	  	  	 	100.0	% 	 	 	100.0	% 	
Las Colinas Corporate Center I	  	Irving	  	TX	  	 	100.0	% 	 	 	1998	  	  	 	159	  	  	 	88.1	% 	 	 	88.1	% 	
Las Colinas Corporate Center II	  	Irving	  	TX	  	 	100.0	% 	 	 	1998	  	  	 	227	  	  	 	59.5	% 	 	 	59.5	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	1,276	  	  	 	89.3	% 	 	 	88.9	% 	
 	 	 	 	 	 	 	 	
Denver	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
350 Spectrum Loop	  	Colorado Springs	  	CO	  	 	100.0	% 	 	 	2001	  	  	 	156	  	  	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	156	  	  	 	100.0	% 	 	 	100.0	% 	
 	 	 	 	 	 	 	 	
Detroit	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
1441 West Long Lake Road	  	Troy	  	MI	  	 	100.0	% 	 	 	1999	  	  	 	107	  	  	 	73.8	% 	 	 	73.8	% 	
150 West Jefferson	  	Detroit	  	MI	  	 	100.0	% 	 	 	1989	  	  	 	493	  	  	 	78.1	% 	 	 	78.1	% 	
Auburn Hills Corporate Center	  	Auburn Hills	  	MI	  	 	100.0	% 	 	 	2001	  	  	 	120	  	  	 	100.0	% 	 	 	100.0	% 	
1075 West Entrance Drive	  	Auburn Hills	  	MI	  	 	100.0	% 	 	 	2001	  	  	 	210	  	  	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	930	  	  	 	85.4	% 	 	 	85.4	% 	
 	 	 	 	 	 	 	 	
Central & South Florida	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Sarasota Commerce Center II	  	Sarasota	  	FL	  	 	100.0	% 	 	 	1999	  	  	 	152	  	  	 	84.9	% 	 	 	66.4	% 	
5601 Hiatus Road	  	Tamarac	  	FL	  	 	100.0	% 	 	 	2001	  	  	 	100	  	  	 	100.0	% 	 	 	100.0	% 	
2001 NW 64th Street	  	Ft. Lauderdale	  	FL	  	 	100.0	% 	 	 	2001	  	  	 	48	  	  	 	100.0	% 	 	 	77.1	% 	
400 TownPark	  	Lake Mary	  	FL	  	 	100.0	% 	 	 	2008	  	  	 	176	  	  	 	31.3	% 	 	 	31.3	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	476	  	  	 	69.7	% 	 	 	61.6	% 	
 	 	 	 	 	 	 	 	
Houston	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
1430 Enclave Parkway	  	Houston	  	TX	  	 	100.0	% 	 	 	1994	  	  	 	313	  	  	 	100.0	% 	 	 	100.0	% 	
1200 Enclave Parkway	  	Houston	  	TX	  	 	100.0	% 	 	 	1999	  	  	 	150	  	  	 	78.7	% 	 	 	78.7	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	463	  	  	 	93.1	% 	 	 	93.1	% 	
 
42

Piedmont Office Realty Trust, Inc.
Property Detail
As of March 31, 2012

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Building Name	  	City	  	State	  	Percent
Ownership	 	 	Year
Built	 	  	Rentable
Square
Footage
Owned (in
thousands)	 	  	Leased
Percentage	 	 	Commenced
Leased
Percentage	 	
 	 	 	 	 	 	 	 	
Los Angeles	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
26200 Enterprise Way	  	Lake Forest	  	CA	  	 	100.0	% 	 	 	2000	  	  	 	145	  	  	 	100.0	% 	 	 	100.0	% 	
800 North Brand Boulevard	  	Glendale	  	CA	  	 	100.0	% 	 	 	1990	  	  	 	518	  	  	 	80.3	% 	 	 	80.3	% 	
1055 East Colorado Boulevard	  	Pasadena	  	CA	  	 	100.0	% 	 	 	2001	  	  	 	175	  	  	 	62.3	% 	 	 	62.3	% 	
Fairway Center II	  	Brea	  	CA	  	 	100.0	% 	 	 	2002	  	  	 	134	  	  	 	95.5	% 	 	 	95.5	% 	
1901 Main Street	  	Irvine	  	CA	  	 	100.0	% 	 	 	2001	  	  	 	172	  	  	 	80.8	% 	 	 	80.8	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	1,144	  	  	 	81.9	% 	 	 	81.9	% 	
 	 	 	 	 	 	 	 	
Minneapolis	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Crescent Ridge II	  	Minnetonka	  	MN	  	 	100.0	% 	 	 	2000	  	  	 	301	  	  	 	73.4	% 	 	 	73.4	% 	
US Bancorp Center	  	Minneapolis	  	MN	  	 	100.0	% 	 	 	2000	  	  	 	927	  	  	 	95.4	% 	 	 	95.0	% 	
One Meridian Crossings	  	Richfield	  	MN	  	 	100.0	% 	 	 	1997	  	  	 	195	  	  	 	100.0	% 	 	 	100.0	% 	
Two Meridian Crossings	  	Richfield	  	MN	  	 	100.0	% 	 	 	1998	  	  	 	189	  	  	 	91.5	% 	 	 	91.5	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	1,612	  	  	 	91.4	% 	 	 	91.2	% 	
 	 	 	 	 	 	 	 	
Nashville	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
2120 West End Avenue	  	Nashville	  	TN	  	 	100.0	% 	 	 	2000	  	  	 	312	  	  	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	312	  	  	 	100.0	% 	 	 	100.0	% 	
 	 	 	 	 	 	 	 	
New York	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
1111 Durham Avenue	  	South Plainfield	  	NJ	  	 	100.0	% 	 	 	1975	  	  	 	237	  	  	 	61.2	% 	 	 	61.2	% 	
2 Gatehall Drive	  	Parsippany	  	NJ	  	 	100.0	% 	 	 	1985	  	  	 	405	  	  	 	100.0	% 	 	 	100.0	% 	
200 Bridgewater Crossing	  	Bridgewater	  	NJ	  	 	100.0	% 	 	 	2002	  	  	 	300	  	  	 	26.3	% 	 	 	0.0	% 	
Copper Ridge Center	  	Lyndhurst	  	NJ	  	 	100.0	% 	 	 	1989	  	  	 	268	  	  	 	97.0	% 	 	 	93.3	% 	
60 Broad Street	  	New York	  	NY	  	 	100.0	% 	 	 	1962	  	  	 	1,027	  	  	 	99.8	% 	 	 	99.8	% 	
600 Corporate Drive	  	Lebanon	  	NJ	  	 	100.0	% 	 	 	2005	  	  	 	125	  	  	 	100.0	% 	 	 	100.0	% 	
400 Bridgewater Crossing	  	Bridgewater	  	NJ	  	 	100.0	% 	 	 	2002	  	  	 	297	  	  	 	99.7	% 	 	 	99.7	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	2,659	  	  	 	87.8	% 	 	 	84.5	% 	
 	 	 	 	 	 	 	 	
Philadelphia	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
1901 Market Street	  	Philadelphia	  	PA	  	 	100.0	% 	 	 	1987	  	  	 	761	  	  	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	761	  	  	 	100.0	% 	 	 	100.0	% 	
 	 	 	 	 	 	 	 	
Phoenix	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
River Corporate Center	  	Tempe	  	AZ	  	 	100.0	% 	 	 	1998	  	  	 	123	  	  	 	100.0	% 	 	 	0.0	% 	
8700 South Price Road	  	Tempe	  	AZ	  	 	100.0	% 	 	 	2000	  	  	 	132	  	  	 	100.0	% 	 	 	100.0	% 	
Desert Canyon 300	  	Phoenix	  	AZ	  	 	100.0	% 	 	 	2001	  	  	 	149	  	  	 	100.0	% 	 	 	100.0	% 	
Chandler Forum	  	Chandler	  	AZ	  	 	100.0	% 	 	 	2003	  	  	 	150	  	  	 	42.0	% 	 	 	42.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	554	  	  	 	84.3	% 	 	 	62.1	% 	
 	 	 	 	 	 	 	 	
Washington, D.C.	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
11107 Sunset Hills Road	  	Reston	  	VA	  	 	100.0	% 	 	 	1985	  	  	 	101	  	  	 	98.0	% 	 	 	98.0	% 	
1201 Eye Street	  	Washington	  	DC	  	 	49.5	% (1) 	 	 	2001	  	  	 	269	  	  	 	100.0	% 	 	 	100.0	% 	
1225 Eye Street	  	Washington	  	DC	  	 	49.5	% (1) 	 	 	1986	  	  	 	225	  	  	 	99.1	% 	 	 	95.6	% 	
3100 Clarendon Boulevard	  	Arlington	  	VA	  	 	100.0	% 	 	 	1987	  	  	 	250	  	  	 	100.0	% 	 	 	100.0	% 	
400 Virginia Avenue	  	Washington	  	DC	  	 	100.0	% 	 	 	1985	  	  	 	224	  	  	 	93.3	% 	 	 	93.3	% 	
4250 North Fairfax Drive	  	Arlington	  	VA	  	 	100.0	% 	 	 	1998	  	  	 	304	  	  	 	100.0	% 	 	 	100.0	% 	
9211 Corporate Boulevard	  	Rockville	  	MD	  	 	100.0	% 	 	 	1989	  	  	 	115	  	  	 	100.0	% 	 	 	100.0	% 	
9221 Corporate Boulevard	  	Rockville	  	MD	  	 	100.0	% 	 	 	1989	  	  	 	115	  	  	 	100.0	% 	 	 	100.0	% 	
One Independence Square	  	Washington	  	DC	  	 	100.0	% 	 	 	1991	  	  	 	334	  	  	 	100.0	% 	 	 	100.0	% 	
9200 Corporate Boulevard	  	Rockville	  	MD	  	 	100.0	% 	 	 	1982	  	  	 	109	  	  	 	100.0	% 	 	 	100.0	% 	
11109 Sunset Hills Road	  	Reston	  	VA	  	 	100.0	% 	 	 	1984	  	  	 	41	  	  	 	0.0	% 	 	 	0.0	% 	
Two Independence Square	  	Washington	  	DC	  	 	100.0	% 	 	 	1991	  	  	 	561	  	  	 	100.0	% 	 	 	100.0	% 	
Piedmont Pointe I	  	Bethesda	  	MD	  	 	100.0	% 	 	 	2007	  	  	 	186	  	  	 	65.6	% 	 	 	65.6	% 	
Piedmont Pointe II	  	Bethesda	  	MD	  	 	100.0	% 	 	 	2008	  	  	 	221	  	  	 	42.1	% 	 	 	23.5	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	  	 	  	 	 	 	 	 	 	 	  	 	3,055	  	  	 	91.8	% 	 	 	90.1	% 	
 
Grand Total (2)
 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
 	20,617

 	84.4
 	% 
 	 	 
 	81.1
 	% 
 	
(1) Although Piemdont owns 49.5% of the asset, it is entitled to 100% of the cash flows under the terms of the property ownership entity’s joint venture agreement.
(2) Piedmont's economic leased percentage as of March 31, 2012 was 75%. Economic leased percentage excludes the square footage associated with executed but not commenced leases for currently vacant spaces and the square footage associated with tenants receiving rental abatements.
 
43

Piedmont Office Realty Trust, Inc.
Supplemental Operating & Financial Data
Risks, Uncertainties and Limitations

 	
 	
Certain statements contained in this supplemental package constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters.
 
The following are some of the factors that could cause our actual results and expectations to differ materially from those described in our forward-looking statements: our ability to successfully identify and consummate suitable acquisitions; the demand for office space, rental rates and property values may continue to lag the general economic recovery; our $500 Million Unsecured Facility matures in August 2012 and a failure to renew this facility could cause our business, results of operations, cash flows, financial condition and access to capital to be adversely affected; lease terminations or lease defaults, particularly by one of our large lead tenants; the impact of competition on our efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which we operate; economic and regulatory changes; additional risks and costs associated with directly managing properties occupied by government tenants; adverse market and economic conditions and related impairments to our assets, including, but not limited to, receivables, real estate assets and other intangible assets; availability of financing; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; potential changes in the political environment and reduction in federal and/or state funding of our government tenants; we are and may continue to be subject to litigation; our ability to continue to qualify as a REIT under the Internal Revenue Code; and other factors detailed in our most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.
 
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this supplemental report. We cannot guarantee the accuracy of any such forward-looking statements contained in this supplemental report, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.	
 
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